Problem 6-19 Varlable Costing Income Statement; Reconciliation [LO6-2, LO6-3] During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Year $1,080,000 Year 2 14 Sales ( 60 per unit) Cost of goods sold ($39 per unit) Gross margin Selling and administrative expenses $1,680,000 points 702,000 1,092,000 378,000 588,000 300,000 330,000 eBook $ \78,000\ 258,000 Net operating income References $3 per unit variable; $246,000 fixed each year. The company's $39 unit product cost is computed as follows: s 9 Direct materials Direct labor 11 facturing overhead. Fixed manufacturing overhead ($345,000 23,000 units) 15 $39 Absorption costing unit product cost Forty percent of fixed manufacturing overhead consists of wages and salaries: the remainder consists production equipment and buildings depreciation charges on Production and cost data for the first two years f operations are: 2 23.000 23.000 Units produced Units sold 18,000 28,000 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 the unit product cost for both years? Unit product cost Required 1 Required 2