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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 $ 19 rixed costs per months $ 162,000 172-000 Pixed manufacturing overhead Pixed selling and administrative Total fixed cost per month 334,000 The product sells for $53 per unit. Production and sales data for July and August, the first two months of operations, follow. ts ts July 27,000 August27,000 23,000 31,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August Jul August Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income $1,219,000 1,643,000 744,000 899,00 552,000 667,000 195,000203,000 $ 472,000 696,000