7. A manufacturing company pays its insurance coverage for a year. The premium is 2,700 and is paid at the beginning of the year. Eighty percent of the premium applies to manufacturing operations and 20% applies to selling and administrative activities. What amounts should be considered product and period costs respectively for the first year of coverage? Product Period A 2,700 0 B. 2,160 540 C. 1,440 360 D. 720 180 a. Option A b. Option B c. Option C d. Option D