During Heston Company's first two years of operations. It reported absorption costing net operating income as follows: Sales ( $60 per unit) Contot goods sold (e $36 per unit) Gronn margin Selling and administrative expenses Net operating income Year 1 Year 2 $ 1,020,000 $1,620,000 612,000 972,000 408,000 648,000 303,000 330,000 $ 105,000 $ 315,000 *$3 per unit variable: $252,000 fixed each year, The company's $36 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Pixed manufacturing overhead ($330,000 + 22,000 units) Absorption conting unit product cost S8 12 1 15 536 Production and cost data for the first two years of operations are: - Units produced Units sold Year 1 22,000 17.000 Year 2 22,000 27.000 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