Ch 6 During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Year 1 Year 2 $1,708,000 $ 1,098,000 540,000 558,000 300,000 $ 258,000 Sales ($61 per unit) Cost of goods sold (@ $30 per unit) Gross margin Selling and administrative expenses Net operating income *$3 per unit variable, $246,000 fixed each year. The company's $30 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($276,000+ 23,000 units) Absorption costing unit product cost Production and cost data for the first two years of operations are: Year 1 23,000 18,000 Units produced Units sold Year 2 23,000 28,000 840,000 868,000 330,000 $538,000 5.6 3 12 $:30 Saved 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. < Prey www 7 of 10 $19 Next >