Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month $ 21 $162,000 163,000 $325,000 The product sells for $46 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Produced July 27,000 August 27,000 Units Sold 23,000 31,000 July August HLS Us Produced Sold 27,00 23,000 27,eee 31,800 The company's Accounting Department has prepared the following absorption costing income statements for July and August Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income July $1,058,000 598, eee 460, eee 186, eee August $1,426,000 806,eee 620, eee 194,000 $ 274, eee $ 426, eee 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