Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct naterials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit 10 s 20 Fixed costs per month: Fixed manufacturing overhead Pixed selling and administrative Total fixed cost per month 162,000 160,000 322,000 The product sells for $46 per unit. Production and sales data for July and August, the first two months of operations, follow Units Units Sold 23,000 31,000 27,000 August 27,000 July The company's Accounting Department has prepared the following absorption costing income statements for July and August July August Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income $1,058,000 1,426,000 552,000744,000 682,000 206,000222,000 460,000 506,000 $ 300,000 Required: 1. Determine the unit product cost under: a. Absorption costing. b. Variable costing. 2. Prepare contribution format variable costing income statements for July and August. 3. Reconcile the variable costing and absorption costing net operating incomes