File Edit View History Bookmarks Tools Window Help C (B Blackboard - UMass Boston X M Question 1 - Homework 4 - Con X O & https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fumi Homework 4 i Saved During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Year 1 Year 2 Sales (@ $62 per unit) $ 1, 116, 000 $ 1, 736, 000 eBook Cost of goods sold (@ $35 per unit) 630, 000 980, 000 Gross margin 486, 000 756, 000 Print Selling and administrative expenses* 305, 000 335, 000 Net operating income $ 181, 000 $ 421, 000 $3 per unit variable; $251,000 fixed each year. The company's $35 unit product cost is computed as follows: Direct materials $ 9 Direct labor 12 Variable manufacturing overhead 2 Fixed manufacturing overhead ($276, 000 + 23, 000 units) 12 Absorption costing unit product cost $ 35 Production and cost data for the first two years of operations are: Year 1 Year 2 Units produced 23, 000 23, 000 Units sold 18, 000 28 , 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. Mc Graw Prev 1 of 4 Next > Hill 1151 OCT 15 is tv 20 O G DD DII DD F1 F2 F3 F4 F6 F7 F8 F9 @ $ N 3 4 5 6 8 9