w During Heaton Company's first two years of operations, it reported absorption costing net operating income as follo Sales (e $63 per unit) Cost of goods sold ( $38 per unit) Gross margin Selling and administrative expenses Net operating income Year $ 1,134,000 684,000 450,000 308,000 142,000 Year 2 $ 1,764,000 1,064,000 700,000 338,000 $ 362,000 *$3 per unit variable: $254,000 fixed each year. The company's $38 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($414,000 Absorption costing unit product cost 23,000 units) Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation production equipment and buildings. Production and cost data for the first two years of operations are: Production and cost data for the first two years of operations are: Year 1 23,000 18,000 Year 2 23,000 28,000 Units produced Units sold 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 bs below. 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 slgn.) Year 1 Year 2 Net operating income (loss) dyuma COOL sandyumana@yah. Registered Login Help Sav 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 Reconcile the absorption costing and the variable costing net operating income figures for each year. Year 2 Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Variable costing net operating income (loss) Add: Fixed manufacturing overhead cost deferred in inventory under absorption costing ness: Fixed manufacturing overhead cost released from inventorytinder absorption costing Absorption costing net operating income