Denton Company manufactures and sells a single product. Cost data for the product are given: $ Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month _ $ 2 18 $ 72,000 160,000 $ 232,000 The product sells for $50 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Produced 18,000 18,000 Units Sold 14,000 22,000 July August The company's Accounting Department has prepared the following absorption costing income statements for July and August: Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income July $ 700,000 280,000 420,000 188,000 $ 232,000 August $1,100,000 440,000 660,000 204,000 $ 456,000 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