Denton Company manufactures and sells a single product. Cost data for the product are given: $ 5 10 3 Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead variable selling and administrative Total variable coat per unit Fixed costs per month Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month $ 19 $ 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 Unita 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 margin Selling and administrative expenses Net operating income July $935,000 374,009 561,000 182,000 5328.000 August $1,375,000 550.000 825.000 191.000 8 634.000 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. Required 1 Required 2 Required 3 Determine the unit product cost under: (a) Absorption costing, (b) Variable costing. Unit Product Cost Absorption costing Variable costing b Required 2 > Required 1 Required 2 Required 3 Prepare variable costing income statements for July and August. Denton Company Variable Costing Income Statement July August 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 ne value) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomos July August Variable costing net operating income floss) Add deduct) fixed manufacturing overhead cont deford in need from inventory under absorption conting Absorption costing not operating income (lossy