Online Banking Ser.. Top Charts - Androi... google G Google G psja isd clever - Go... Bb Saved The company's $36 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($391,000 = 23,000 units) Absorption costing unit product cost $ 36 Forty percent of fixed manufacturing overhead consists of wages and salaries, the remain production equipment and buildings. Production and cost data for the first two years of operations are: Units produced Units sold Year 1 23,000 18,000 Year 2 23,000 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 fo Saved Sales (@ $62 per unit) Cost of goods sold (@ $36 per unit) Gross margin Selling and administrative expenses* Net operating income Year 1 $ 1,116,000 648,000 468,000 301,000 $ 167,000 Year 2 $ 1,736,000 1,000,000 728,000 331,000 $ 397,000 *$3 per unit variable: $247,000 fixed each year. The company's $36 unit product cost is computed as follows: 12 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($391,000 = 23,000 units) Absorption costing unit product cost 1 17 $36 Forty percent of fixed manufacturing overhead consists of wages and salaries; the rem production equipment and buildings. Production and cost data for the first two years of operations are