Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials S Direct labor 10 Variable manufacturing overhead Variable selling and administrative 2 $ 20 Total vari able cost per unit Fixed costs per month: $ 150,000 166,000 316,000 Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month The product sells for $46 per unit. Production and sales data for July and August, the first two months of operations, follow Units Units Sold 26,000 34,000 Produced July August 30,000 30,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August: July $1,196,000 598,000 598,000 218,000 August $1,564,000 782,000 782,000 234,000 Sales Cost of goods sold Gross margin Selling and administrative expenses 548,000 380,000 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. 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, (b) Variable costing Unit Product Cost a. Absorption costing b. Variable costing Required 1 Required 2 Required 2 Required 3 Required 1 Prepare contribution format variable costing income statements for July and August. Denton Company Variable Costing Income Statement July August 0 0 0 $ 0 0 Net operating income (loss) 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 Abatorption 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) Required 2 Required 3