Denton Company manufactures and sells a single product. Cost data for the product are given: $ 3 10 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 $ 120,000 172,000 $ 292,000 The product sells for $46 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Produced 30,000 30,000 Units Sold 26,000 34,000 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 $1,196,000 520,000 676,000 250,000 $ 426,000 August $1,564,000 680,000 884,000 274,000 $ 610,000 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