Required 11 Required 2 Required 31 What is the variable costing net operating income in Year 1 and in Year 2? (Loss amounts should be indicated with a minus sign.) Net operating income (loss) Year 1 Year 2 < Required 1 Required 3 > Required 1 Required 2 Required 3 Reconcile the absorption costing and the variable costing net operating income figures for each year. Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Variable costing net operating income (loss) Absorption costing net operating income < Required 2 Rogalan 3 Year 2 During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Year 2 $ 1,798,000 928,000 870,000 335,000 $ 535,000 Sales (@$62 per unit) Cost of goods sold (@ $32 per unit) Gross margin Selling and administrative expenses. Net operating income *$3 per unit variable: $248,000 fixed each year. The company's $32 unit product cost is computed as follows: Year 1 $1,178,000 608,000 570,000 305,000 265,000 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($288,000 + 24,000 units) Absorption costing unit product cost llaite aundicand $ Year 1 34 300 Year 2 34 400 Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges on production equipment and buildings. Production and cost data for the first two years of operations are: 56 12 1 of 3 2 12 $ 32 Next > Variable manufacturing overhead Fixed manufacturing overhead ($288,000 24,000 units) Absorption costing unit product cost Units produced Units sold Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges on production equipment and buildings. Production and cost data for the first two years of operations are: Year 1 Year 2 24,000 29,000 12 $.32 24,000 19,000 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. Check my work work Complete this question by entering your answers in the tabs below.