During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows:Sales (@$60 per unit)Cost of goods sold (@ $41 per unit)Gross marginSelling and administrative expenses*Net operating income* $3 per unit variable; $246,000 fixed each year.The company's $41 unit product cost is computed as follows:Direct materialsDirect laborVariable manufacturing overheadFixed manufacturing overhead ($378,000 21,000 units)Absorption costing unit product cost$ 712418$ 41Production and cost data for the first two years of operations are:Year 1Year 2Units producedUnits sold21,00016,00021,00026,000Year 1$ 960,000656,000Year 2$ 1,560,0001,066,000304,000294,000$ 10,000494,000324,000$ 170,000Required: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 3Using variable costing, what is the unit product cost for both years?Unit product cost

Name: During Heaton Company's first two years of operations, it reported ab
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows:Sales (@$60 per unit)Cost of goods sold (@ $41 per unit)Gross marginSelling and administrative expenses*Net operating income* $3 pe