Please do not give solution in image format thanku Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation chargeson production equipment and buildings.Production and cost data for the first two years of operations are:Units producedUnits soldYear 125,00020,000Required 1Required: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.Year 225,00030,000Required 2 Required 3What is the variable costing net operating income in Year 1 arsign.)Net operating income (loss)Year 1Required 1 Required 2 Required 3Year 2Reconcile the absorption costing and the variable costing net operating income figures for each year.Reconciliation of Variable Costing and Absorption Costing Net Operating IncomesYear 1Variable costing net operating income (loss)Add: Fixed manufacturing overhead cost deferred in inventory under absorption costingLess: Fixed manufacturing overhead cost released from inventory under absorption costingAbsorption costing net operating income85,000Year 2(85,000) During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows:Sales (@ $62 per unit)Cost of goods sold (@ $38 per unit)Gross marginSelling and administrative expenses*Net operating incomeYear 1$ 1,240,000760,000480,000307,000$ 173,000*$3 per unit variable; $247,000 fixed each year.The company's $38 unit product cost is computed as follows:Direct materialsDirect laborVariable manufacturing overheadFixed manufacturing overhead ($425,000 25,000 units)Absorption costing unit product costYear 2$ 1,860,0001,140,000720,000337,000383,000$$ 712217$38

Name: Please do not give solution in image format thanku Forty percent of fi
Uploaded: 2024-03-20T06:33:06.000Z
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Description: Please do not give solution in image format thanku Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation chargeson production equipment and buildings.Production and cost data for the firs