3 3.75 points eBook Print Denton Company manufactures and sells a single product. Cost data for the product are given: 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 $ 6 11 2 2 $ 21 $ 90,000 172,000 $ 262,000 The product sells for $45 per unit. Production and sales data for July and August, the first two months of operations, follow: References July August Units Produced 15,000 15,000 Units Sold 11,000 19,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August: Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Required: 1. Determine the unit product cost under: a. Absorption costing. b. Variable costing. July August $ 495,000 $ 855,000 275,000 475,000 220,000 194,000 380,000 210,000 $ 26,000 $ 170,000 2. Prepare variable costing income statements for July and August. 3. Reconcile the variable costing and absorption costing net operating incomes.