CoursHeroTranscribedText: Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials 5 4 Direct labor 9 Variable manufacturing overhead 4 Variable selling and administrative 3 Total variable cost per unit 5 20 Fixed costs per month: Fixed manufacturing overhead 5 108,000 Fixed selling and administrative 175,000 Total fixed cost per month 5 283,000 The product sells for $48 per unit. Production and sales data for July and August, the rst two months of operations, follow: Units Units Produced sold July 27,000 23,000 August 27,000 31,000 [ The company's Accounting Department has prepared the following absorption costing income statements for July and August: July August sales $1,104,000 $ 1,488,000 Cost of goods sold 483,000 651,000 Gross margin 621,000 837,000 Selling and administrative expenses 244,000 268,000 Net operating income $ 377,000 569,000 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