Denton Company manufactures and sells a single product. Cost data for the product are given below: Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Faced costs per month: Fixed manufacturing overhead Foxed selling and administrative Total fixed cost per month $ 150,000 175,000 $325,000 The product sells for $45 per unit. Production and sales data for July and August, the first two months of operations, are as follows: Units Produced 30,000 30,000 Units Sold 26,000 34,000 July August The company's Accounting Department has prepared absorption costing income statements for July and August as presented below: Sales Cost of goods sold Gross margin Selling and administrative expenses Not operating income July $1,170,000 598,000 $ 572,000 253,000 $ 319,000 August $1,530,000 782,000 $ 748,000 277 000 $ 471.000 Required: 1. Determine the unit product cost under absorption costing and variable costing. Unit Product Cost a. Absorption costing b. Variable costing 2. Prepare contribution format variable costing income statements for July and August. Denton Company Variable Costing Income Statement July August Variable expenses: Total variable expenses Fixed expenses: Total fixed expenses Net operating income (loss) lolo 3. Reconcile the variable costing and absorption costing net operating income (loss) figures. Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes July August Variable costing net operating income (loss) Add (deduct) fixed manufacturing overhead cost deferred in (released from) inventory under absorption costing Absorption costing net operating income (loss) $ 0S 0