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< > ezto.mheducation.com Assignments: ACCT-1B-02-123420 - Managerial Accounting M Question 2 - Homework_ Chapter 6 - Connect Homework Chapter 6 i 2 Saved During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Sales (@ $62 per unit) Year 1 Year 2 10 points Cost of goods sold (@ $33 per unit) Gross margin $ 1,116,000 $1,736,000 594,000 924,000 522,000 308,000 812,000 338,000 $ 214,000 $ 474,000 eBook Print * Selling and administrative expenses* Net operating income * $3 per unit variable; $254,000 fixed each year. The company's $33 unit product cost is computed as follows: Direct materials Variable manufacturing overhead $ 6 Direct labor 9 3 References Fixed manufacturing overhead ($345,000 23,000 units) Absorption costing unit product cost 15 $ 33 Production and cost data for the first two years of operations are: Units produced Units sold Required: Year 1 23,000 18,000 Year 2 23,000 28,000 Mc Graw Hill 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the variable costing net operating income in Year 1 and in Year 2? (Loss amounts should be indicated with a minus sign.) Net operating income (loss) Year 1 Year 2 < Required 1 Required 3 > < Prev 2 of 7 Next > Dashboard Help Save & Exit Submit 8 Check my work