Denton Company manufactures and sells a single product Cost data for the product are given $ 5 10 3 2 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 $ 20 $ 84,000 166,000 $ 250,000 The product sells for $55 per unit. Production and sales data for July and August, the first two months of operations, follow July August Units Produced 21,000 21,000 Units Sold 17,000 25,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August. Sales Cost of goods sold Gross marrin July $935,000 374,000 561.000 August $375,000 550.000 825.000 Selling and administrative expenses Net operating income 200,000 $361,000 216,000 609,000 $ 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the unit product cost under: (a) Absorption costing, (bly variable costing. Unit Product Cost a. Absorption costing b. Variable costing Dawid Prepare variable costing income statements for July and August. Denton Company Variable Costing Income Statement July August Sales Variable expenses: Variable cost of goods sold Variable selling and administrative expenses Fixed selling and administrative expenses 0 0 0 0 0 Net operating income (loss) $ 0 $ 0 Pemimac1 Readired 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 (loss)