During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Sales (e $63 per unit) Cost of goods sold ($35 per unit) Gross margin Selling and administrative expenses Net operating income Year 1 Year 2 $ 1,197,000 $ 1,827,000 665,000 1,025,000 532,000 812,000 310,000 340,000 $ 222,000 $ 472,000 SB 10 13 *$3 per unit variable: $253,000 fixed each year. The company's $35 unit product cost is computed as follows: Direct materiala Direct labor Variable manufacturing overhead Pixed manufacturing overbead ($312,000 - 24,000 units) Absorption couting unit product cost $ 35 Production and cost data for the first two years of operations are: Year 1 Year 2 Unite produced 24,000 24,000 Unita sold 19,000 29,000 Required: 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income in Year 1 and in Year 2? 3. Reconcile the absorption costing and the variable costing net operating income figures for each year. | Required 1 Required 2 Required 3 Using variable costing, what is the unit product cost for both years? Unit product cost Required 1 Required 2 Required 3 What is the variable costing net operating income in Year 1 and in Year 2? (Loss amounts should be indicated with a minus sign.) Year 1 Year 2 Net operating income (loss) Reconcile the absorption costing and the variable costing net operating income figures for each year. Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Variable costing net operating income (loss) Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income Year 2