3 Problem 6-19 (Static) Variable Costing Income Statement; Reconciliation (L06-1, 6-2, L06-3) Book Print orences During Heston Company's first two years of operations. It reported absorption costing net operating income as follows: Year 1 Sales ($25 per unit) Year 2 $ 1,000,000 $ 1,250,000 Cost of goods sold (e $18 per unit) 720,000 900,000 Gross margin 280,000 350,000 Selling and administrative expenses 210,000 230,000 Net operating income $ 70,000 $ 120,000 $2 per unit variable: $130,000 fixed each year. The company's $18 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Pixed manufacturing overhead ($270,000 - 45,000 units) Absorption conting unit product cost $ 18 Production and cost data for the first two years of operations are: Year 1 Year 2 Units produced 45,000 45.000 Units sold 40.000 50.000 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 $4 1 alatt BAB Totus 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 Required 3 Using variable costing, what is the unit product cost for both years? Unit product cost $ 12 Required 1 Required 2 > Required 1 Required a Required 3 What is the variable costing net operating income in Year 1 and in Year 2? Year 1 Year 2 Net operating income (loss) Required 1 Required 2 Required 3 Year 2 Reconcile the absorption costing and the variable costing net operating income figures for each year. (Enter any losses or deductions as a negative value.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Variable costing net operating income (loss) Add (deduct) fixed manufacturing overhead deforred in (released from) Inventory under absorption costing Absorption costing net operating income (loss)