Denton Company manufactures and sells a single product. Cost data for the product are given: 12 3 Variable costa per uniti 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 $ 135,000 169,000 $ 304,000 The product sells for $47 per unit. Production and sales data for July and August, the first two months of operations, follow. July Units Produced 27,000 27,000 Units Sold 23,000 31,000 August 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 $1,081,000 552,000 529.000 192,000 $ 337,000 August $ 1,457,000 744.000 713,000 200.000 $ 513,000 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