A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is $2,700 and is paid at the beginning of the first 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