Denton Company manufactures and sells a single product. Cost data for the product are given:

The product sells for $$54$ per unit. Production and sales data for July and August, the first two months of

operations, follow:

The company's Accounting Department prepared the following absorption costing income statements

for July and August:

Required:

Determine the unit product cost under:

a$.$ Absorption costing.

b$.$ Variable costing.

Prepare variable costing income statements for July and August.

Reconcile the variable costing and absorption costing net operating incomes.