Denton Company manufactures and sells a single product. Cost data for the product are given: $ 5 1e 3 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 1 $ 19 $ 120,000 166,000 $ 286,000 The product sells for $55 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Produced 24,000 24,000 Units Sold 20, eee 28,888 July August 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 $1,100,000 460,000 640,000 186,000 $ 454,000 August $ 1,540,000 644,000 896,000 194,000 $ 702,000 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. Answer is not complete. 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. Denton Company Variable Costing Income Statement July August Sales $ 1,100,000 $ 1,540,000 Variable expenses: Variable cost of goods sold 460,000 X 644,000 X Variable selling and administrative expenses 60,000 X 84.000 728,000 520,000 580,000 812.000 0 0 Net operating income (loss) IS 580,000 S 812,000