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 adninistrative Tot ariable cost per unit Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month $ 5 11 3 2. $ 21 $ 105,000 172,000 $ 277,800 The product sells for $51 per unit. Production and sales data for July and August, the first two months of operations, follow. July August Units Produced 21,000 21,080 Units Sold 17,800 25,000 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 $ 867,000 408,000 459,000 206,000 $ 253,000 August $1,275,000 600,000 675,000 222,000 $ 453,000 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