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During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Sales (563 per unit) Coat of goods sold ($34 per unit) Crons margin Selling and administrative expenses Net operating Income Yaar 1 1.071.000 578,000 493,000 304,000 $ 189.000 Year 2 61,701,000 910,000 783,000 334,000 $ 449,000 $3 per unit variable: $253,000 fixed each year. The company's $34 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead (5286,000 - 22,000 unita) Absorption conting unit product cost 13 5 34 Production and cost data for the first two years of operations are: Units produced Units sold Year! 22.000 17.000 Year 2 22,000 27.000 During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Sales (563 per unit) Coat of goods sold ($34 per unit) Crons margin Selling and administrative expenses Net operating Income Yaar 1 1.071.000 578,000 493,000 304,000 $ 189.000 Year 2 61,701,000 910,000 783,000 334,000 $ 449,000 $3 per unit variable: $253,000 fixed each year. The company's $34 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead (5286,000 - 22,000 unita) Absorption conting unit product cost 13 5 34 Production and cost data for the first two years of operations are: Units produced Units sold Year! 22.000 17.000 Year 2 22,000 27.000