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 Total variable cost per unit Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month $ 3 11 3 3 $ 20 $ 120,000 169,000 $ 289,000 The product sells for $49 per unit. Production and sales data for July and August, the first two months of operations, follow: July August Units Produced 30,000 30,000 Units Sold 26,000 34,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August: July August $ 1,666,000 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Required: 1. Determine the unit product cost under: a. Absorption costing. b. Variable costing. $ 1,274,000 546,000 714,000 728,000 247,000 952,000 271,000 $ 481,000 $ 681,000 2. Prepare variable costing income statements for July and August. 3. Reconcile the variable costing and absorption costing net operating incomes.