2 Denton Company manufactures and sells a single product. Cost data for the product are given 25 points Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed costs per month Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month $ 12 2 2 $ 22 8 21:23 $ 60,000 163,000 $ 223,000 eBook The product sells for $52 per unit. Production and sales data for July and August, the first two months of operations, follow Units Units Produced 15,000 11,000 August 19,000 Sold July References 15,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August July August $ Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income $ 572,eee 264,000 308, cee 185, eee $ 123,000 988,000 456, eee 532,000 201,00 331,00 $ Required 1 Required 2 Required 3 Determine the unit product cost under: (a) Absorption costing, (b) Variable costing. Unit Product Cost a. . Absorption costing Variable costing Required 1 Required 2 Required 3 Prepare variable costing income statements for July and August. Denton Company Variable Costing Income Statement July August Net operating income (loss) Required 1 Required 3 > Required 1 Required 2 Required 3 Reconcile the variable costing and absorption costing net operating incomes. (Enter any losses or deductions as a negative value... Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes July August Variable costing net operating income (loss) Add (deduct) fixed manufacturing overhead cost deferred in (released from) inventory under absorption costing Absorption costing net operating income (oss)