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

Variable costs per unit:
Direct materials		$4
Direct labor		10
Variable manufacturing overhead		4
Variable selling and administrative		2
Total variable costs per unit		$20
Fixed costs per month:
Fixed manufacturing overhead	$	60,000
Fixed selling and administrative		163,000
Total fixed cost per month	$	223,000

The product sells for $52 per unit. Production and sales data for July and August, the first two months of operations, are as follows:

	Units Produced	Units Sold
July	15,000	11,000
August	15,000	19,000

The companys Accounting Department has prepared absorption costing income statements for July and August as presented below:

	July		August
Sales	$	572,000	$	988,000
Cost of goods sold		242,000		418,000
Gross margin		330,000		570,000
Selling and administrative expenses		185,000		201,000
Net operating income	$	145,000	$	369,000

Required: 1. Determine the unit product cost under absorption costing and variable costing Unit Product Cost a. Absorption costing b. Variable costing