3. Reconcile the variable costing and absorption costing net operating income (loss) figures. Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes July Augus 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) Denton Company manufactures and sells a single product. Cost data for the product are given belo 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 $ 21 $ 84,000 166,000 $ 250,000 The product sells for $50 per unit. Production and sales data for July and August, the first two month operations, are as follows: Units Produced 21,000 21,000 Units Sold 17,000 25,000 July August The company's Accounting Department has prepared absorption costing income statements for July August as presented below: Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income July $ 850,000 391,000 $ 459,000 200,000 $ 259,000 August $1,250,000 575,000 $ 675,000 216,000 $ 459,000 Required