Required 1Required 2Required 3What is the variable costing net operating income in Year 1 and in Year 2? (Loss amounts should be indicated with a minussign.)Net operating income (loss)Year 1Year 2< Required 1Required 1 Required 2 Required 3Reconcile the absorption costing and the variable costing net operating income figures for each year.Reconciliation of Variable Costing and Absorption Costing Net Operating IncomesVariable costing net operating income (loss)Add (deduct) fixed manufacturing overhead deferred in (released from) inventoryAbsorption costing net operating incomeRequired 3 >< Required 2Required 3 >Year 1Year 2 During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows:Year 1$ 900,000555,000345,000294,000$ 51,000Sales (@$60 per unit)Cost of goods sold (@ $37 per unit)Gross marginSelling and administrative expenses*Net operating income* $3 per unit variable; $249,000 fixed each year.The company's $37 unit product cost is computed as follows:Direct materialsDirect laborVariable manufacturing overheadFixed manufacturing overhead ($360,000+ 20,000 units)Absorption costing unit product costProduction and cost data for the first two years of operations are:Units producedUnits soldRequired 1Year 120,00015,000Complete this question by entering your answers in the tabs below.Required:1. Using variable costing, what is the unit product cost for both years?2. What is the variable costing net operating income in Year 1 and in Year 2?3. Reconcile the absorption costing and the variable costing net operating income figures for each year.Required 2Unit product costYear 220,00025,000Required 3Using variable costing, what is the unit product cost for both years?$ 108118$ 37< Required 1Year 2$ 1,500,000925,000575,000324,000$ 251,000Required 2 >

Name: Required 1Required 2Required 3What is the variable costing net operat
Uploaded: 2024-03-20T06:32:49.000Z
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Description: Required 1Required 2Required 3What is the variable costing net operating income in Year 1 and in Year 2? (Loss amounts should be indicated with a minussign.)Net operating income (loss)Year 1Year 2< Required 1Required 1 Required 2 Required 3Reconcile