Problem 7-22 (Algo) Variable Costing Income Statements; Income Reconciliation (L07-1, L07-2, L07-3] $ 5 3 2 Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials Direct labor 11 Variable manufacturing overhead Variable selling and administrative Total variable cost per unit $ 21 Fixed costs per month: Fixed manufacturing overhead $ 144,000 Fixed selling and administrative 172,800 Total fixed cost per month $ 316,000 The product sells for $53 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Units Produced Sold July 24,000 20,000 August 24,000 28,000 The company's Accounting Department has prepared the following absorption costing income statements for July and Augusti Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income July $ 1,060,000 500,000 560,000 212,000 $ 348,000 August $ 1,484,000 780,000 784,090 228,000 $ 556,000 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 J. RECONCIE ve VOLQUIE LUSINY CHU OUsui puun Lusuny el OPCIOUNTY HUNTCS. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare variable costing income statements for July and August. Denton Company Variable Costing Income Statement July August + Net operating income (loss)