Problem 6-19 Variable Costing Income Statement, Reconciliation [LO6-2, LO6-3] During Heaton Company's first two years of operations, it reported absorption costing net operating Income as follows: Year 1 Year Sales ( $64 per unit) Cost of goods sold( $38 per unit) Gross margin Selling and administrative expenses Net operating income $ 1,216,888 $1,856,888 1,182,9e8 754,8ee 336,800 418,888 722,8e8 494,88e 386,888 $ 1188,eee $3 per unit varlable; $249,000 fixed each year. The company's $38 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($488,000 24,eee units) Absorption costing unit product cost 12 17 $ 38 Forty percent of fixed manufacturing overhead consists of wages and salaries, the remalnder consists of depreclation charges on production equipment and buildings. Production and cost data for the first two years of operations are Units produced Units sold Year 1 Year 2 24,e8 24,e80 19,88 29,888 Required 1. Using variable costing, what is the unit product cost for both years? 2. What is the varlable costing net operating Income In Year 1 and In Year 2? 3. Reconcile the absorption costing and the varlable costing net operating Income figures for each year Complete this question by entering your answers in the tabs below Required 1Required 2Required 3 Using variable costing, what is the unit product cost for both years? nit product cost