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Problem 6-19 (Algo) Variable Costing Income Statement; Reconciliation [LO,6-1, LO6-2, LO6-3] 1.42 During Heaton Company's first two years of operations, it reported absorption costing net

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Problem 6-19 (Algo) Variable Costing Income Statement; Reconciliation [LO,6-1, LO6-2, LO6-3] 1.42 During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: poirhs \begin{tabular}{lrr} Sales (f $63 per unit) & Year-1 & Year 2 \\ coat of qoods sold (e $40 per unit) & $945,000 & $1,575,000 \\ Grose margin & 600,000 & 1,000,000 \\ sellipg and adainintrative expenses* & 345,000 & 575,000 \\ Het operating incone & 292,000 & 322,000 \\ \hline \end{tabular} - $3 per unit variabie: $247,000 fixed each year. The company's $40 unit product cost is computed as follows: \begin{tabular}{lr} oirest materials & 59 \\ Direct Tabar & 11 \\ variable panufscturing overhead & 1 \\ Flxed manutacturing overbead ($380,000+20,000 unita) & 19 \\ \hline Mbaorption costing unit product cost & $40 \\ \hline \end{tabular} Production and cost data for the first two yeats of operations are: Required: 1. Using varioble 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. Reconclle the absorption costing and the variable costing net operating income figures for each yeac. Complete this question by entering your answers in the tabs below. Using variable costing, what is the unit product cost for both years? Complete this question by entering your answers in the tabs below. What is the variable costing net operating income in Year 1 and in Year 2? (Loss amounts should be indicated with a minus sign.) teconcile the absorption costing and the variable costing net operating income figures for each year

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