Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials 4 Direct labor 9. Variable manufacturing overhead Variable selling and administrative 3 $ 19 Total variable cost per unit Fixed costs per month: Fixed manufacturing overhead $ 108,000 Fixed selling and administrative 172,000 $ 280,000 Total fixed cost per month The product sells for $52 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Units Sold Produced July 27,000 27,000 23,000 31,000 August The company's Accounting Department has prepared the following absorption costing income statements for July and August: July $1,196,000 460,000 August $ 1,612,000 620,000 992,000 265,000 Sales Cost of goods sold Gross margin 736,000 241,000 Selling and administrative expenses 727,000 495,000 Net operating income 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