Denton Company manufactures and sells a single product. Cost data for the product are given:

Variable costs per unit:
Direct materials			$	6
Direct labor				10
Variable manufacturing overhead				2
Variable selling and administrative				3
Total variable cost per unit			$	21
Fixed costs per month:
Fixed manufacturing overhead	$	120,000
Fixed selling and administrative		163,000
Total fixed cost per month	$	283,000

The product sells for $52 per unit. Production and sales data for July and August, the first two months of operations, follow:

	Units Produced	Units Sold
July	30,000	26,000
August	30,000	34,000

The companys Accounting Department has prepared the following absorption costing income statements for July and August:

	July			August
Sales	$	1,352,000		$	1,768,000
Cost of goods sold		572,000			748,000
Gross margin		780,000			1,020,000
Selling and administrative expenses		241,000			265,000
Net operating income	$	539,000		$	755,000

Determine the unit product cost under:

1. Absorption costing.

2. Variable costing.

3. Prepare variable costing income statements for July and August.

4. Reconcile the variable costing and absorption costing net operating incomes