Denton Company manufactures and sells a single product Cost data for the product are given: Variable costs per unit Direct materials $ 5 Direct labor 9 Variable manufacturing overhead 4 Variable selling and administrative 2. Total variable cont per unit 5 20 Fixed costs per month Fixed manufacturing overhead $ 72,000 Fixed selling and administrative 169,000 Dotal fixed cost per month S 241,000 The product sells for $49 per unit. Production and sales data for July and August, the first two months of operations, follow. July August Unito Produced 24,000 24,000 Unita Sold 20,000 28,000 The company's Accounting Department has prepared the following absorption costing Income statements for July and Augusti Salon Cost of goods sold Gross margin Selling and administrative expenses Not operating income July August $ 980,000 1,372,000 420,000 588,000 560,000 780,000 209,000 225,000 $ 351.000 $ 559,000 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