During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Salos ( 364 per unit) Cost of goods sold ($40 per unit) Gross margin Selling and administrative expenses Net operating income Year 1 5 960,000 bee, eee 360,000 296 000 $ 64,000 Year 2 $ 1,600,eee 1.000, 60e, eee 326,00 $274,000 *$3 per unit vartable, $251.000 fixed each year. The company's $40 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($320,0 20,000 units) Absorption costing unit product cost SH 13 3 16 340 Production and cost data for the first two years of operations are units produced Units sold Year 1 20.se 15,000 Year 2 20,00 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