Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials $ 4 Direct labor 12 Variable manufacturing overhead Variable selling and administrative Total variable cost per unit $ 22 Fixed costs per month: Fixed manufacturing overhead $ 120, 000 Fixed selling and administrative 172,090 Total fixed cost per month $ 292, 090 The product sells for $48 per unit. Production and sales data for July and August, the first two months of operations, follow. nces Units Produced Units Sold July 24,000 20, 090 August 24, 900 28, 090 The company's Accounting Department has prepared the following absorption costing income statements for July and August: July August Sales $ 960, 000 $ 1,344,090 Cost of goods sold 480 , 090 672090 Gross margin 480,009 672,980 Selling and administrative expenses 232,900 256,608 Net operating income $ 248,009 $ 416,060 Required: 1. Determine the unit product cost under a. Absorption costing. b. Variable costing. 2. Prepare variable costing Income statements for July and August. Graw Prev 4 of 4 Next