2. Explain the difference between manufacturing costs and nonmanufacturing costs and provide examples for each.

3. Explain the difference between fixed cost behavior and variable cost behavior in terms of volume, total cost, and unit cost. Provide examples of fixed costs and variable costs.

A C D F G H. 1 Exhibit 1 in the case shows the summary of monthly operating costs assuming printing volume is 150,000 brochures, as presented below. Cost per 100 Monthly costs at brochures 150.000 volume Monthly costs at 120,000 volume 5 Manufacturing costs: 6 Direct material, variable 7 Direct labor, variable 8 Direct labor, fixed 9 Manufacturing overhead, variable 10 Manufacturing overhead, fixed 11 Total manufacturing costs $6,000 1,500 3,000 1,500 3,375 $15,375 12 13 Nonmanufacturing costs: 14 Marketing, variable 15 Marketing, fixed 16 Corporate, fixed 17 Total nonmanufacturing costs 18 Total costs $1,500 1,875 3,750 $7,125 $22,500 19 20 Variable manufacturing costs per unit 21 Variable nonmanufacturing costs per unit 22 Fixed manufacturing costs per unit 23 Fixed nonmanufacturing costs per unit 24