Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costa per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed costs per month Pixed manufacturing overhead Fixed selling and administrative Total fixed cost per month 3 11 3 2 $ 19 $ 45,000 172,000 $ 217,000 The product sells for $47 per unit. Production and sales data for July and August, the first two months of operations, follow: Units July August Units Produced 15,000 15,000 Sold 11,000 19,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August: July August Sales $ 517,000 $ 893,000 Coat of goods sold 220,000 380,000 Gross margin 297,000 513,000 Selling and administrative expenses 194,000 210,000 Net operating income $ 103,000 303,000 $ Required: 1. Determine the unit product cost under: a. Absorption costing. b. Variable costing. 2. Prepare variable costing income statements for July and August. $ Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income $ 517,000 220,000 297,000 194,000 $ 103,000 893,000 380,000 513,000 210,000 303,000 $ 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the unit product cost under: (a) Absorption costing, (b) Variable costing. Unit Product Cost Absorption costing Variable costing b. Required 2 > 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 Net operating income (loss)