During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows:

$$3$ per unit variable; $$248,000$ fixed each year.

The company's $$40$ unit product cost is computed as follows:

Production and cost data for the first two years of operations are:

Required:

Using variable costing, what is the unit product cost for both years?

What is the variable costing net operating income in Year $1$ and in Year $2?$

Reconcile the absorption costing and the variable costing net operating income figures for each year.

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Required $2$

Reconcile the absorption costing and the variable costing net operating income figures for each year.

Note: Enter any losses or deductions as a negative value.