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Please help! CoursHeroTranscribedText: During Heaton Company's first two years of operations, it reported absorption costing...

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Accounting

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CoursHeroTranscribedText: During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Year 1 Year 2 Sales (0 $63 per unit) $ 945,000 $ 1,575,000 Cost of goods sold (6 $29 per unit) 435,000 725,000 Gross margin 510,000 850,000 Selling and administrative expenses* 298,000 328,000 Net operating income $ 212,000 $ 522,000 " $3 per unit variable; $253,000 xed each year. The company's $29 unit product cost is computed as follows: Direct materials $ 7 Direct labor 10 Variable manufacturing overhead 1 Fixed manufacturing overhead ($220,000 + 20,000 units) 11 Absorption costing unit product cost $ 29 Production and cost data for the first two years of operations are: Year 1 Year 2 Units produced 20,000 20,000 Units sold 15,000 25,000 I Required: 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income in Year1 and in Year 2? 3. Reconcile the absorption costing and the variable costing net operating income gures for each year

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