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d on page Enter text to search No results Options v Chapter 6 - Homework Saved Help S During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Year 1 Year 2 25 points Sales ( $64 per unit) Gross margin Net operating income $1,216,e0 $1,856,880 Cost of goods sold (e $33 per unit)627,0 957,88e 899,006 selling and administrative expenses311,000 341,000 $1278,00e558,800 589,000 eBook Print $3 per unit variable; $254,000 fixed each year. The company's $33 unit product cost is computed as follows: $ 8 Direct materials Direct laborS Variable manufacturing overhead Fixed manufacturing overhead ($336,eee24,000 units)14 Absorption costing unit product cost S 33 Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges o production equipment and buildings. Production and cost data for the first two years of operations are: Year 1 Year 2 24,888 Units produced Prev 1 of 41 Next >