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 53 12 3 3 $ 21 3:14 $ 126,000 163,000 $ 289,000 The product sells for $54 per unit Production and sales data for July and August, the first two months of operations, follow Units Produced 21,000 21,000 July August Units Sold 17,000 25,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August: Duly Sales Cost of goods sold Gross margin Selling and administrative expenses Het operating incon $918,000 408,000 510,000 214,000 $ 296,000 August $ 1,350,000 600,000 750,000 238,000 $512,000 > 912 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the unit product cost under: (a) Absorption costing, (b) Variable costing. Unit Product Cost a Absorption costing b Variable costing Required 1 Required 2 > Required 1 Required 2 Required 3 Prepare variable costing income statements for July and August. Denton Company Variable Costing Income Statement July August