Problem 6-19 (Algo) Variable Costing Income Statement: Reconciliation (L0,6-1, LO6-2, LO6-3] During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Sales (@362 per unit) Cost of goods sold ($32 per unit) Gross margin Selling and administrative expenses Net operating income Year 1 $ 1,240,000 600,000 500.000 313,000 $ 287,000 Year 2 $ 1,860,000 960,000 900,000 343,000 $ 557,000 *$3 per unit variable: $253,000 fixed each year. The company's $32 unit product cost is computed as follows: 10 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($325.000 25.000 units) Absorption costing unit product cost 11 $32 Production and cost data for the first two years of operations are Units produced Units sold Year 1 25,000 2,000 Year 2 25,000 30,000 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. Required 1 Required 2 Required 3 Using variable costing, what is the unit product cost for both years? Unit product cost RE Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 2 What is the variable costing net operating income in Year 1 and in Year 27 (Loss amounts should be indicated with a minus sign) Year 1 Year 2 Not operating income oss) Complete this question by entering your answers in the tabs below. Required! Required 2 Required 3 Reconcile the absorption costing and the variable costing net operating Income figures for each year Year 2 Reconciliation of Variable Costing and Absorption Coating Net Operating incomes Year 1 Vi costing net operating income (s) Nos deducted manufacturing overhondered in leased from contory under absorption costing Absorption costing net operating income Required 2