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During Heaton Company's first two years of pperations, it reported absorption costing net operating Income as follows: Balon (361 per unit) Cont of goods sold
During Heaton Company's first two years of pperations, it reported absorption costing net operating Income as follows: Balon (361 per unit) Cont of goods sold (934 per unit) Gronn margin Selling and administrativo expennen Not operating Income Your 976,000 540,000 132,000 294.000 130,000 Your 2 $1,500,000 384,000 702,000 324,000 370,000 $3 per unit variable: $246,000 fixed each year. The company's $34 unit product cost is computed as follows: 0 Direct materials Direct labor Variable manutaturing overhead Fixed manufacturing overhead (6.336,000 21.000 unita) Absorption coating unit product cont 3 16 3.34 Production and cost data for the first two years of operations are: Units produced Units Bold YO 21,000 16,000 Yo2 21,000 26,000 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
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