A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is $2,100 and is paid at the beginning of the first year. Sixty percent of the premium applies to manufacture operations and forty percent applies to selling and administrative activities. What amounts should be considered product and period costs respectively for the first year of coverage? Product $280 Period $420 206 $420 $280 $700 30 50 $700