The document provides production and cost data for a company over two years, including a $3 per unit variable cost and $245,000 in fixed costs each year. It asks for the unit product cost using variable costing for both years, the variable costing net operating income for years 1 and 2, and a reconciliation of the absorption costing and variable costing net operating income figures for each year.

1. * $3 per unit variable; $245 , 000 fixed each year. The company's $40 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 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. Complete this question by
entering your answers in the tabs below. Using variable costing, what is the unit product cost for
both years? What is the variable costing net operating income in Year 1 and in Year 2? (Loss
amounts should be indicated with a minus sign.) Reconcile the absorption costing and the
variable costing net operating income figures for each year.