Questions are listed below:

During Heaton Company's first two years of operations, It reported absorption costing net operating Income as follows: Year 1 Year 2 Sales (@ $61 per unit) $ 1, 220,000 1, 830, 000 Cost of goods sold (@ $41 per unit) 820,900 1, 230, 000 Gross margin 400, 900 600, 000 Selling and administrative expenses* 309, 000 339, 000 Net operating income 91, 000 261, 000 *$3 per unit variable; $249,000 fixed each year. The company's $41 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($450,000 : 25,000 units) 18 Absorption costing unit product cost $ 41 Production and cost data for the first two years of operations are: Year 1 Year 2 Units produced 25, 000 25, 000 Units sold 20,000 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 $ 23 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 (loss) 441,000 Required 1 Required 2 Required 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) $ 91,000 $ 261,000 Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing (90,000) 20,000 Absorption costing net operating income $ 1,000 $