Required 1 Required 2 Required 3 Reconcile the variable costing and absorption costing net operating incomes. (Enter any losses or deductions as a negative value.) 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)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 Variable costingPrepare variable costing income statements for July and August. Denton Company Variable Costing Income Statement July August Net operating income (loss)Denton Company manufactures and sells a single product Cost data for the product are given: Variable costs per unit: Direct materials 5 4 Direct labor 11 Variable manufacturing overhead 3 Variable selling and administrative 3 Total variable cost per unit 5 21 Fixed costs per month: Fixed manufacturing overhead $ T2,000 Fixed selling and administrative 159:000 Total fixed cost per month 5241:000 The product sells for $51 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Units Produced Sold July 18,000 14,000 August 13,000 22,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August: July August: Sales $114,000 $1,122,000 Cost of goods sold 303,000 484,000 Gross margin 406,000 633,000 Selling and administrative expenses 211,000 235,000 Net operating income $195,000 $ 403,000 [ 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