Swed Help So Chapter 7 Homework 3 During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: 2 points Sales ($64 per unit) Cost of goods sold (@ $31 per unit) Gross margin Selling and administrative expenses Net operating income Year 1 $ 1,216,000 589,000 627,000 304,000 $ 323,000 Year 2 $ 1,856,000 899,000 957,000 334,000 $ 623,000 eBook References *$3 per unit variable: $247,000 fixed each year, The company's $31 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead (5336,000+ 24,000 units) Absorption costing unit product, cost $ 6 10 1 14 $ 31 Forty percent of fixed manufacturing overhead consists of wages and salaries, the remainder consists of depreciation charges on production equipment and buildings. Chapter 7 Homework Saved 3 Production and cost data for the first two years of operations are: Year 1 24,000 19,000 Units produced Units sold Year 2 24,000 29,000 2 points eBook 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. References 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 s 17