Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials $ 3 Direct labor 10 Variable manufacturing overhead 3 Variable selling and administrative Total variable cost per unit $ 18 Fixed costs per month: Fixed manufacturing overhead $ 84,900 Fixed selling and administrative 172,000 Total fixed cost per month $ 256,900 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 21, 006 17,000 August 21, 000 25, 000 The company's Accounting Department has prepared the following absorption costing income statements for July and August: July August Sales $ 884, 090 $ 1, 300, 900 Cost of goods sold 340, 000 500, 900 Gross margin 544, 090 800,900 Selling and administrative expenses 206,090 222,000 Net operating income $ 338, 090 $ 578, 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