During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Sales (e 361 per unit) Coat of goods sold ($42 per unit) Gross margin Selling and administrative expenses Net operating income Year 1 $ 1,159,000 798,000 361,000 308,000 $ 53,000 Year 2 $ 1,769,000 1,218,000 551,000 338,000 5 213,000 $3 per unit variable: $251,000 fixed each year. The company's $42 unit product cost is computed as follows: $ 6 13 Direct materials Direct labor Variable manufacturing overhead Pixed manufacturing overhead ($456,000 - 24,000 units) Absorption conting unit product cost 19 $.42 Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges on production equipment and buildings. Production and cost data for the first two years of operatons are: Unita produced Units sold Year 1 24,000 19,000 Year 2 24,000 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, es Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using variable costing, what is the unit product cost for both years? Unit product cost Required 2 > Required 1 Required 2 Required 3 What is the variable costing net operating income in Year 1 and in Year 2? Year 1 Year 2 Net operating income (loss) (Required 1 Required 3 > Required 1 Required 2 Required 3 Reconcile the absorption costing and the variable costing net operating income figures for each year. (Enter any los deductions as a negative value.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 2 Variable costing net operating income (loss) Year 1 Absorption costing net operating income