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

Variable costs per unit:

Direct materials

Direct labor

$$,5$

Variable manufacturing overhead

variable selling and adrinistrative

Total variable cost per unit

Fixed costs per month:

Fixed manufacturing overhead

Fixed selling and adrinistrative

Total fixed cost per month

The product sells for $$51$ per unit. Production and sales data for July and August, the first two months of operations, follow:

The company's Accounting Department has prepared the following absorption costing Income statements for July and August:

Requlred:

Determine the unit product cost under:

a$.$ Absorption costing.

b$.$ Varlable costing.

Prepare varlable costing Income statements for July and August.

Reconcile the varlable costing and absorption costing net operating Incomes.

Complete this question by entering your answers in the tabs below.

Determine the unit product cost under: $($a$)$ Absorption costing, $($b$)$ Variable costing.