Check my Problem 6-22 (Algo) Variable Costing Income Statements; Income Reconciliation [LO6-1, LO6-2, LO6-3] 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 $ 5 10 3 2 $ 20 $ 96,000 172,000 $ 268,000 The product sells for $54 per unit. Production and sales data for July and August, the first two months of operations, follow: July August Units Produced 24,000 24,000 Units Sold 20,000 28,000 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. July August $ 1,080,000 $1,512,000 440,000 616,000 640,000 896,000 212,000 228,000 $428,000 $ 668,000