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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 Smith 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 (7) January 1,500 2,750 February 2,000 3,000 March 1,400 2.700 April 1.200 2,600 3. Data for Jones Manufacturing: The company uses direct labor hours to apply manufacturing overhead. Budgeted manufacturing overhead for the coming year equals $400,000. The estimated number of direct labor hours equals 100,000. a. Calculate the predetermined overhead rate