Chapter 6(2) Saved 3 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: 10 points Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit 12 eBook $ 22 Fixed costs per month: Print Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month S 108,000 172,000 5 280,000 References The product sells for $48 per unit. Production and sales data for July and August, the first two months of operations, follow: uly August Units Produced 18,800 18,800 Units Sold 14,800 22,8e0 The company's Accounting Department has prepared the following absorption costing income statements for July and August: July August Sales Cost of goods solod Gross morgin Selling and administrative expenses Net operating income 672,00e $ 1,056,080 484,000 $ 108,000 268,000 364,988572.988 308,000 200,0 216,08 Required: 1. Determine the unit product cost under a. Absorption costing b. Variable costing 2. Prepare contribution format variable costing income statements for July and August 3. Reconcile the variable costing and absorption costing net operating incomes