Denton Company manufactures and sells a single product. Cost data for the product are given: $ 4 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 $ 19 $ 90,000 172,000 $ 262,000 The product sells for $49 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Produced 18,000 18,000 Units Sold 14,000 22,000 July August The company's Accounting Department has prepared the following absorption costing income statements for July and August July Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income $ 686,000 322,000 364,000 186,000 $ 178,000 ADA August $1,078,000 506,000 572,000 194,000 $ 378,000 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 uly and Auperating inco