Reunion Enterprises produces a video streaming device for homes. The company data for the first two years of operations follows: $ Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses 26 11 2 1 $ $ $320,000 $ 70,000 During its first year of operations, Reunion produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company's product is $88 per unit. Required: 1. Assume the company uses variable costing: a. Compute the unit product cost for Year 1 and Year 2 b. Prepare an income statement for Year 1 and Year 2 2. Assume the company uses absorption costing a Compute the unit product cost for Year 1 and Year 2 b. Prepare an income statement for Year 1 and Year 2 3. Reconcile the difference between variable costing and absorption costing net operating income in Year 1 Reg LA Reg 1B Reg 2A Reg 28 Req3 Assume the company uses absorption costing. Prepare an income statement for Year 1 and Year 2. Round your intermedi calculations to 2 decimal places) Reunion Enterprises Income Statement Year 1 Sales S 3.520,000 (1.880,000) Year 2 S 4.400.000 (2.450,000) Cost of goods sold 1,640,000 X 1,950 000 X Gross margin Selling and administrative expenses Nel operating income (loss) 110,000 120,000 IS 1.530.000 S1830.000 Req 2A Req3 > Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2A Req 2B Reg 3 Assume the company uses absorption costing. Compute the unit product cost for Year 1 and Year 2. (R calculations and final answers to 2 decimal places.) Year 1 Year 2 Unit product cost IS 4700 XS 49.00 Req 1B Req 2B> Reg 1A Reg 1B Reg 2A Reg 28 Reg 3 Reconcile the difference between variable costing and absorption costing net operating income in Year 1. Enter any losses or deductions as a negative value. Round your intermediate calculations to 2 decimal places.) Year 1 Year 2 S 2,010,000 $ 1,530,000 0 Variable costing net operating income (loss) Add Fixed manufacturing overhead cost deferred in Inventory under absorption costing Deduc Fixed manufacturing overhead cost released from inventory under absorption costing Absorption costing net operating income (loss) (180.000) $ 1,830,000 $ 1,530,000 ( Req 28