Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials $ 4 Direct labor 9 Variable manufacturing overhead 2 Variable selling and administrative 2 Total variable cost per unit 5 17 Fixed costs per month: Fixed manufacturing overhead $ 120,000 Fixed selling and administrative 166,000 Total fixed cost per month $ 286,000 The product sells for $49 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 company's Accounting Department has prepared the following absorption costing income statements for July and August: July August Sales $ 1,274,000 $ 1,666,000 Cost of goods sold 494,000 646,000 Gross margin 780,000 1,020,000 Selling and administrative expenses 218,000 234,000 Net operating income 5 562,000 $ 786,000 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: (3) Absorption costing, (b) Variable costing. a. Absorption costing b. Variable costing Required 2 > Complete this question by entering your answers in the tabs below. 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)