Denton Company manufactures and sells a single product. Cost data for the product are given: MENN 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 $ 18 ve $ 60,000 172,000 $ 232,000 $ 23 The product sells for $54 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Produced 15,000 15,000 Units Sold 11,000 19,000 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 $ 594,000 220,000 374,000 194,000 $ 180,000 August $1,026,000 380,000 646,000 210,000 $ 436,000 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