Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials $ 5 Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit $. 19 Fixed costs per month Fixed manufacturing over head $ 72,000 Fixed selling and administrative 172,000 Total fixed cost per month $ 244 , . 11 2 1 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 18,000 18,000 Units Sold 14,000 22,00 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 $ 714,000 308,000 406,000 186, 000 $ 220,000 August $ 1,122,000 484,000 638,000 194,000 $444,000 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