Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials $ 5 Direct labor 10 Variable manufacturing overhead 2 Variable selling and administrative 1 Total variable cost per unit $ 13 Fixed costs per month: Fixed manufacturing overhead $ 135,000 Fixed selling and administrative 163,000 Total fixed cost per month $ 298,000 The product sells for $52 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Units Produced Sold July 27,000 23,000 August 27,000 31,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August: July August Sales $ 1,196,000 $ 1,612,000 Cost of goods sold 506,000 682,000 Gross margin 690,000 930,000 Selling and administrative expenses 186,000 194,000 Net operating income $ 504,000 $ 736,000 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. 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. 3. Absorption costing _ b. Variable costing _ Required 1 Required 2 Required 3 Prepare variable costing income statements for July and August. Net operating income (loss) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Reconcile the variable costing and absorption costing net operating incomes. (Enter any losses or deductions as a negative value.) Variable costing net operating income (loss) Add (deduct) xed manufacturing overhead cost deferred in (released from) inventory under absorption costing Absorption costing net operating income (loss)