MODULE 2 - THEORY A. What are the three major elements of product costs in a manufacturing company? B. Define the following: (a) direct materials, (b) indirect materials, (c) direct labor, (d) Indirect labor, and (e) manufacturing overhead. C. Explain the difference between a product cost and a period cost. D. Distinguish between (a) a variable cost, (b) a fixed cost, and (c) a mixed cost. E. What effect does an increase in volume have on- a. Unit fixed costs? b. Unit variable costs? c. Total fixed costs? d. Total variable costs? MODULE 3 - THEORY A. Why aren't actual manufacturing overhead costs traced to jobs just as direct materials and directlabor costs are traced to jobs? B. Explain the four-step process used to compute a predetermined overhead rate. C. What is the purpose of the job cost sheet in a job-order costing system? D. Explain how a sales order, a production order, a materials requisition form, and a labor timeticket are involved in producing and costing products. E. Explain why some production costs must be assigned to products through an allocation process. F. Why do companies use predetermined overhead rates rather than actual manufacturing overheadcosts to apply overhead to jobs? G. What factors should be considered in selecting a base to be used in computing thepredetermined overhead rate