Problem 6-19 (Algo) Variable Costing Income Statement; Reconciliation (LO,6-1, LO6-2, L06-3] During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Sales (e $63 per unit) Coat of goods sold ($43 per unit) Grous margin Selling and administrative expenses Net operating income Year 1 945,000 645,000 300,000 298,000 2,000 Year 2 $ 1,575,000 1,075,000 500,000 328,000 $ 172,000 $ $3 per unit variable; $253,000 fixed each year. The company's $43 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Tixed manufacturing overhead ($320,000 - 20,000 unita) Absorption conting unit product cost $ 10 12 5 16 $ 43 Production and cost data for the first two years of operations are: Unito produced Unite sola Year 1 20,000 15,000 Year 2 20,000 25,000 Production and cost data for the first two years of operations are: Units produced Units sold Year 1 20,000 15,000 Year 2 20,000 25,000 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 cout CH Required 2 > 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 What is the variable costing net operating income In Year 1 and in Year 2? (loss amounts should be indicated with a minus sign) Year 1 Year 2 Net operating income (los) 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 Required 2 Required 3 Reconcile the absorption costing and the variable costing net operating income figures for each year. Reconcllition of Variable Conting and Absorption Costing Net Operating Incomes Year 1 Year 2 Variable conting net operating income (loss) Add (deduct) foxed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption conting net operating income