Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials $ 4 Direct labor 11 Variable manufacturing overhead 3 Variable selling and administrative 3 Total variable cost per unit $ 21 Fixed costs per month: Fixed manufacturing overhead $ 105,000 Pixed selling and administrative 166,000 Total fixed cost per month $ 271,000 The product sells for $48 per unit. Production and sales data for July and August, the first two months of operations, follow: July August Units Produced 21,000 21,000 Units Sold 17,000 25,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August: July August Sales $ 816,000 $ 1,200,000 Cost of goods sold 391,000 575,000 Gross margin 425,000 625,000 Selling and administrative expenses 217,000 241,000 Net operating income $ 200,000 $ 384,000 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