Variable costs per unit: Direct materials $ 4 Direct labor 9 Variable manufacturing overhead 4 Variable selling and administrative 3 Total variable cost per unit $ 20 Fixed costs per month: Fixed manufacturing overhead $ 90,000 Fixed selling and administrative 166,000 Total fixed cost per month 5 256,000 The product sells for $47 per unit Production and sales data for July and August, the first two months of operations, follow: Units Units Produced Sold July 15,000 11,000 August 15,000 19,000 ' The company's Accounting Department has prepared the following absorption costing income statements for July and August: July August sales $ 517,000 $ 893,000 Cost of goods sold 253,000 437,000 Gross margin 264,000 456,000 Selling and administrative expenses 199,000 223,000 Net operating income 5 65,000 $ 233,000 ' 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. 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. a Absorption costing _ a Variable costing _ Required 2 > Required 1 Required 2 Required 3 Prepare variable costing income statements for July and August. Denton Company Variable Costing Income Statement July August Net operating income (loss)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.) Variable costing net operating income (loss) Add (deduct) xed manufacturing overhead cost deferred in (released from) inventory under absorption costing Absorption costing net operating income (loss)