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

Variable costs per unit:
Direct materials			$	4
Direct labor				11
Variable manufacturing overhead				3
Variable selling and administrative				2
Total variable cost per unit			$	20
Fixed costs per month:
Fixed manufacturing overhead	$	105,000
Fixed selling and administrative		172,000
Total fixed cost per month	$	277,000

The product sells for $46 per unit. Production and sales data for July and August, the first two months of operations, follow:

	Units Produced	Units Sold
July	21,000	17,000
August	21,000	25,000

The companys Accounting Department has prepared the following absorption costing income statements for July and August:

	July			August
Sales	$	782,000		$	1,150,000
Cost of goods sold		391,000			575,000
Gross margin		391,000			575,000
Selling and administrative expenses		206,000			222,000
Net operating income	$	185,000		$	353,000

Required:

Reconcile the variable costing and absorption costing net operating incomes.