Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials $ 4 Direct labor 10 Variable manufacturing overhead 3 Variable selling and administrative 2 Total variable cost per unit $ 19 Fixed costs per month: Fixed manufacturing overhead $ 45,000 Fixed selling and administrative 175,000 Total fixed cost per month $ 220,000 The product sells for $52 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Produced Units Sold July 15,000 11,000 August 15,000 19,000 The companys Accounting Department has prepared the following absorption costing income statements for July and August: July August Sales $ 572,000 $ 988,000 Cost of goods sold 220,000 380,000 Gross margin 352,000 608,000 Selling and administrative expenses 197,000 213,000 Net operating income $ 155,000 $ 395,000 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.