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  1. business
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  3. during heaton company's first two years of operati

During Heaton Company's first two years of operations, it reported absorption costing net operating income...

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Accounting

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During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows Sales ( 561 per unit) cost of goods sold ( 534 per unit) Gross margin selling and administrative expenses Net operating income Year 1 $ 1,159,000 646,080 513,eee 304,000 $ 209, eee Year 2 $ 1,769,000 986,000 783,000 334,000 $ 449,000 *$3 per unit variable: $247000 fixed each year, The company's $34 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($288,000 + 24,000 units) Absorption costing unit product cost $7 12 3 12 $ 34 Production and cost data for the first two years of operations are: Year 1 Year 2 Units produced 24,000 24,000 Units sold 19,000 29,000 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

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