Required 1: Unit product cost for both years under absorption costing

2) Net operating income loss for Year 1 & 2?

3) Reconcile

omework-Chapter 6 2 During Heaton Company's first two years of operations, it reported absorption costing net operating Income as fol Sales ( $63 per unit) Cost of goods sold ( $37 per unit) Gross nargin Se1ling and administrative expenses* Net operating income $ 1,197,000S 1,827,000 1,073.000 341,000 S 1183,0001 413,000 703,000 oints ,000 eBook $3 per unit variable; $254,000 fixed each year The company's $37 unit product cost is computed as follows: Print Direct materials Direct labor Variable manufacturing overhead Pixed nanufacturing overhead (6336,000 24,000 unita) Absorption costing unit product coat References 14 s 37 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 operatons are: Unite produced Units sold Year 1Year 2 24,000 24,000 19,000 29,000 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