During its first two years of operations, Heaton Company reported absorption costing net operating income of $250,000 in fixed costs each year and $3 per unit in variable costs. The company's $38 unit product cost was calculated based on production and cost data over the two years, with variable costing used to determine the unit product cost and net operating income for each year, reconciling the differences between absorption and variable costing.

1. During Heaton Company's first two years of operations, it reported absorption costing net
operating income as follows: - $3 per unit variable; $250,000 fixed each year. The company's $38
unit product cost is computed as follows: Production and cost data for the first two years of
operations are: Required: 1. Using variable costing. what is the unit product cost for both years? 2.
What is the vartable costing net operating income in Year 1 and in Year 2? 3. Reconelle the
absorption costing and the vahable costing net operating income figures for each yearComplete
this question by entering your answers in the tabs below. Uning variable costing, what is the unit
product cost for both years?Complete this question by entering your onswers in the tabs below.
What is the variable costing net operating income in Yeari and in Year 2 ? (Loss amounts should
be indicated with a minus sign.)Complete this question by entering your answers in the tabs
below. Reconcle the absomption costing and the variable costing net operating income figures for
each year.