Please do not give solution in image format thanku During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows:Year 1Year 2$ 1,159,000$ 1,769,000Sales (@ $61 per unit)Cost of goods sold (@ $36 per unit) 684,000Gross margin475,000Selling and administrative expenses* 303,000Net operating income$ 172,000*$3 per unit variable; $246,000 fixed each year.The company's $36 unit product cost is computed as follows:Direct materialsDirect laborShow Transcribed Text1,044,000725,000Net operating income (loss)333,000Variable manufacturing overheadFixed manufacturing overhead ($288,000 ÷ 24,000 units) 12Absorption costing unit product cost$36Production and cost data for the first two years of operations are:Year 1Year 2Units produced 24,00024,000Units sold 19,000 29,000Required:1. Using variable costing, what is the unit product cost for both years?Year 1$ 392,000Using variable costing, what is the unit product cost for both years?Unit product cost$8Required 1 Required 2 Required 3112. What is the variable costing net operating income in Year 1 and in Year 2?Required 1 Required 2 Required 3What is the variable costing net operating income in Year 1 and in Year 2? (Loss amounts should be indicated with a minussign.)5Year 23. 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.Reconcile the absorption costing and the variable costing net operating income figures for each year.Reconciliation of Variable Costing and Absorption Costing Net Operating IncomesYear 1Variable costing net operating income (loss)Add (deduct) fixed manufacturing overhead deferred in (released from) inventory underabsorption costingAbsorption costing net operating incomeYear 2

Using variable costing, only variable manufacturing costs are included in the product cost. The net…

During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Year 1 Year 2 $ 1,159,000 $ 1,769,000 Sales (@ $61 per unit) Cost of goods sold (@ $36 per unit) 684,000 Gross margin 475,000 1,044,000 725,000 333,000 Selling and administrative expenses* 303,000 Net operating income $ 172,000 *$3 per unit variable; $246,000 fixed each year. The company's $36 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($288,000 ÷ 24,000 units) 12 Absorption costing unit product cost $36 Production and cost data for the first two years of operations are: Year 1 Year 2 Units produced 24,000 24,000 Units sold 19,000 29,000 $ 392,000 $8 11 5 Required: 1. Using variable costing, what is the unit product cost for both years? Using variable costing, what is the unit product cost for both years? Unit product cost