Problem 6-22 Variable Costing Income Statements; Income Reconciliation [LO6-1, LO6-2, LO6-3] 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 $ 5 10 4 3 $ 22 $ 108,000 175,000 $ 283,000 The product sells for $45 per unit. Production and sales data for July and August, the first two months of operations, follow: Units July August Units Produced 18,000 18,000 Sold 14,000 22,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August: Sales July August $630,000 $ 990,000 Cost of goods sold 350,000 550,000 Gross margin 280,000 440,000 Selling and administrative expenses 217,000 241,000 Net operating income $ 63,000 $ 199,000 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