Ch 4 HWA Saved Problem 4-22 (Algo) Variable Costing Income Statements; Income Reconciliation (LO4-1, LO4-2, LO4-3] Denton Company manufactures and sells a single product. Cost data for the product are given: points 8 04:55:43 Skipped 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 $ 19 eBook $ 72,000 163,000 $ 235,000 Print The product sells for $45 per unit. Production and sales data for July and August, the first two months of operations, follow: References Units Produced 24,000 24,000 Units Sold 20,000 28,000 July August 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 July $ 900,000 420,000 480,000 183,000 $ 297,000 August $1,260,000 588,000 672,000 191,000 $ 481,000 Required: 1. Determine the unit product cost under: a. Absorption costing. b. Variable costing. 2. Prepare variable costing income statements for July and August. 3. Reconcile the variable costing and absorption costing net operating incomes