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 (@ $38 per unit) Gross margin Selling and administrative expenses Net operating income Year 1 945,000 570,000 375,000 300,000 75,000 Year 2 $ 1,575,000 950,000 625,000 330,000 $ 295,000 $ $3 per unit variable: $255,000 fixed each year. The company's $38 unit product cost is computed as follows: $ 5 Direct materials Direct labor Variable manufacturing overhead Pixed manufacturing overhead ($360,000 - 20,000 units) Absorption costing unit product cost 4 18 $ 38 Production and cost data for the first two years of operations are: Units produced Units Bold Year 1 20,000 15,000 Year 2 20,000 25,000 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. Direct Variable manufacturing overhead Pixed manufacturing overhead ($360,000 + 20,000 units) Absorption conting unit product cost 18 $ 38 54 Production and cost data for the first two years of operations are: Units produced Units sold Year 1 20,000 15,000 Year 2 20,000 25,000 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. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required: Required 2 Required 3 Using variable costing, what is the unit product cost for both years? Unit product cost $ 22 Required 2 > The company's $38 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Pixed manufacturing overhead ($360,000 - 20.000 units) Absorption costing unit product cost $ 5 11 4 18 $ 38 -21 Production and cost data for the first two years of operations are: Year 20,000 15,000 Year 2 20,000 25,000 Units produced Units sold 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, Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Requungd 3 Required 3 What is the variable costing net op in Year 1 and in Year 2? (Loss amounts should be indicated with a minus sign) Year 2 Year 1 $ (941,000) Net operating incomo 0.191.000) (los) Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($360,000 + 20,000 units) Absorption costing unit product cost $ 5 11 4 18 $ 38 Production and cost data for the first two years of operations are: Units produced Units sold Year 1 20,000 15,000 Year 2 20,000 25,000 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. Answer is complete but not entirely correct. Complete this question by ente!ing your answers in the tabs below. Required 1 Required 2 Required 3 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 Year 2 Variable costing net operating income (loss) $ 4,000 X $ 384,000 Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under 80,000 (80,000) absorption costing Absorption costing net operating income $ 84,000 X $ 304,000