Homework Saved Sales (e $62 per unit) Cost of goods sold (e $36 per unit) Gross margin Selling and administrative expenses Net operating income Year 1 $ 1,054,000 612,000 442,000 301,000 $ 141,000 Year 2 $ 1,674,000 972,000 702,000 331,000 $ 371,000 33:57 *$3 per unit variable: $250,000 fixed each year. The company's $36 unit product cost is computed as follows: . DOK Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($352,000 + 22,000 unito) Absorption costing unit product cost $ 8 9 3 16 $36 ences Production and cost data for the first two years of operations are: Units produced Unite sola 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. Complete this question by entering your answers in the tabs below. Prev 1 of 3 Next >