1. Differentiate between product costs and period costs. Discuss. Elaborate. Give examples of each. Define variable cost and fixed cost. Discuss the behavior of each. Give an example of each. 2. Given the following data for Taylor Coffee Shop, use the high-low method to determine the variable cost per unit (cup of coffee), total fixed costs, and the estimated total cost formula or total cost equation. Units (x) Costs (y). 1,500 January $ 11,000 February 13. nnn 2,000 February 13,000 2,000 March 1,400 10,600 April 1,200 9,800 3. Data for Jones Manufacturing: The company uses direct labor hours to apply manufacturing overhead. Budgeted manufacturing overhead for the coming year equals $600,000. The estimated number of direct labor hours equals 100,000. a. Calculate the predetermined overhead rate. The workers worked 102,000 actual direct labor hours during the year. The pay rate was $25 per hour. The amount of direct was $25 per hour. The amount of direct material purchased during the year equaled $800,000. The amount of direct material used in production for the year equaled $750,000 b. What was the total manufacturing costs applied to jobs for the year? Show calculations. Direct material Direct labor Applied manufacturing overhead Total