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 4 A 2 $ 1 9 Total variable cost per unit Fixed costs per month Fixed manufacturing overhead $63,000 166,000 Fixed selling and administrative 229,000 Total fixed cost per month The product sells for $51 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Units Produced Sold July August 21,000 17,000 21,000 25,000 The company's Accounting July and August: ment has prepared the fol wing absorption costing income statements July 867,000 August Sales 1,275,000 500,000 340,000 Cost of goods sold Gross margin Selling andd administrative expenses 527,000 775,000 200,000 216,000 $327,000 559,000 Net operating income Required: 1. Determine the unit product cost under: a. Absorption costing. b. Variable costing 2. Prepare contribution format variable costing income statements for July and August 3. Reconcile the variable costing and absorption costing net operating incomes