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 12 2 2 $ 19 $ 150,000 172,000 $ 322,000 The product sells for $53 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Produced Units Sold 30,000 30,000 July August 26,000 34,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August: July August 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. $ 1,378,000 $ 1,802,000 748,000 1,054,000 240,000 572,000 806,000 224,000 $ 582,000 $ 814,000 2. Prepare 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 $ 22 b. Variable costing $ 17