During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows:Sales (@$63 per unit)Cost of goods sold (@ $32 per unit)Gross marginSelling and administrative expenses*Net operating income.* $3 per unit variable; $254,000 fixed each year.The company's $32 unit product cost is computed as follows:Direct materialsDirect laborVariable manufacturing overheadFixed manufacturing overhead ($315,000 ÷ 21,000 units)Absorption costing unit product cost$ 69215$ 32Production and cost data for the first two years of operations are:Year 1Year 2Units produced21,00021,00016,00026,000Year 1$ 1,008,000512,000Year 2$ 1,638,000832,000496,000302,000806,000332,000$ 194,000$ 474,000Units soldRequired: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 1Required 2 Required 3Using variable costing, what is the unit product cost for both years?Unit product cost< Required 1Required 2>

Name: During Heaton Company's first two years of operations, it reported ab
Uploaded: 2024-03-20T06:33:06.000Z
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Description: During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows:Sales (@$63 per unit)Cost of goods sold (@ $32 per unit)Gross marginSelling and administrative expenses*Net operating income.* $3 p