Problem 6-19 Variable Costing Income Statement; Reconciliation [LO6-2, LO6-3] 9 During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows Year 1 Year 2 Sales ( $63 per unit) Cost of goods sold( $35 per unit) Gross margin Selling and administrative expenses $ 1,260, 1,890,800 1,650,000 700,000 560,0e0 314,000 points 344,000 $ 1246,00e496,800 0358.20Net operating income eBook $3 per unit variable; $254,000 fixed each year References The company's $35 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($375,25,600 units) Absorption costing unit product cost 13 15 $ 35 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 first two years of operations are: 9 Year 1 Year 2 25,000 20,00 30,00 Units produced Units sold 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 points 03:53:41 Complete this question by entering your answers in the tabs below eBook Required 1 Required 2Required 3 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 Year 1 Year 2 Variable costing net operating income (loss) Absorption costing net operating income