Problem 6-22 Prepare and Reconcile Variable Costing Statements [LO6-1, LO6-2, LO6-3] Denton Company manufactures and sells a single product. Cost data for the product are given below: Variable costs per unit: $65 Direct materials Direct labor 10 Variable manufacturing overhead Variable selling and administrative Total variable costs per unit $19 Fixed costs per month: 96,000 Fixed manufacturing overhead 175,000 Fixed selling and administrative Total fixed cost per month 271,000 The product sells for $51 per unit. Production and sales data for July and August, the first two months of operations, are as follows: Units Units Sold Produced 24,000 20,000 July 24,000 August 28,000 The company's Accounting Department has prepared absorption costing income statements for July and August as presented below: August July 1,020,000 1,428,000 Sales Cost of goods sold 616,000 440,000 Gross margin 812,000 580,000 195,000 203,000 Selling and administrative expenses 385,000 609,000 Net operating income