Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials $ 4 Direct labor 12 Variable manufacturing overhead 4 Variable selling and administrative 2 Total variable cost per unit $ 22 Fixed costs per month: Fixed manufacturing overhead $ 90,000 Fixed selling and administrative 166,000 Total fixed cost per month $ 256,000 The product sells for $48 per unit. Production and sales data for July and August, the first two months of operations, follow: July 18,000 14,000 August 18,000 22,000 The companys Accounting Department has prepared the following absorption costing income statements for July and August: Sales $ 672,000 $ 1,056,000 Cost of goods sold 350,000 550,000 Gross margin 322,000 506,000 Selling and administrative expenses 194,000 210,000 Net operating income $ 128,000 $ 296,000 . 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. Prepare variable costing income statements for July and August. Reconcile the variable costing and absorption costing net operating incomes. (Enter any losses or deductions as a negative value.)