Please help with an answer to the following:

During Heaton Company's first two years of operations, the company reported absorption costing net operating income as follows Year 1 Year 2 Sales (@ $62 per unit) $1, 178,000 $ 1,798,000 Cost of goods sold (@ $30 per unit) 570,000 870,000 Gross margin 608,000 928,000 Selling and administrative expenses* 305,000 335,000 Net operating income $ 303,000 $ 593,000 *$3 per unit variable; $248,000 fixed each year. The company's $30 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Now oo Fixed manufacturing overhead ($288,000 = 24,000 units) Absorption costing unit product cost $ 30 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 24,000 24,000 Units sold 19,000 29,000 Required: 1. Prepare a variable costing contribution format income statement for each year. Heaton Company Variable Costing Income Statement Year 1 Year 2 Beginning merchandise inventory $ 1 Variable expenses Variable selling and administrative expenses Variable selling and administrative Total variable expenses 0 0 0 Fixed expenses Fixed manufacturing overhead 288,000 288,000 Total fixed expenses 288,000 288,000 Net operating income (loss) $ (287,999) $ (288,000 2. Reconcile the absorption costing and the variable costing net operating income figures for each year. 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)