Need assistance...If possible, show formulas..

During Heaton Company's first two years of operations, the company reported absorption costing net operating income as follows: Year 1 Year 2 Sales (@ $63 per unit) $ 945,000 $ 1,575,000 Cost of goods sold (@ $39 per unit) 585,000 975,000 Gross margin 360,000 600,000 Selling and administrative expenses" 291,000 321,000 Net operating income $ 69,000 $ 279,000 *$3 per unit variable; $246,000 fixed each year. The company's $39 unit product cost is computed as follows: Direct materials $ 6 Direct labor 12 Variable manufacturing overhead 5 Fixed manufacturing overhead ($320,000 + 20,000 units) 16 Absorption costing unit product cost $ 39 Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges on production equipment and buildings. Production and cost data for the two years are: Year 1 Year 2 Units produced 20,000 20,000 Units sold 15,000 25,000 Required: 1. Prepare a variable costing contribution format income statement for each year.Required 1. Prepare a variable costing contribution format income statement for each year. x Answer is not complete. Heaton Company Variable Costing Income Statement Year 1 Year 2 $ Sales $ 945,000 1,575,000 Variable expenses: Indirect materials X 90,000 X 150,000 x Indirect labor X 180,000 x 300,000 X Fixed manufacturing overhead X 75,000 X 125,000 X Variable selling and administrative expenses Total variable expenses 345,000 575,000 Contribution margin 600,000 1,000,000 Fixed expenses: Total fixed expenses 0 0 $ Net operating income (loss) $ 600,000 1,000,0002. Reconcile the absorption costing and the variable costing net operating income figures for each year. X Answer is not complete. Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes (Losses) Year 1 Year 2 Variable costing net operating income (loss) Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income (loss) $ 0 $ 0