ABC Manufacturing Company prepays its insurance coverage for a four-year period. The premium for the four years is $3,200 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 costs and period costs respectively for the first year of coverage? PRODUCT COSTS PERIOD COSTS Option A $640 $160 Option B $160 $640 Option C $2560 $640 Option D $640 $2560 Select one: a. Option A b. Option D c. Option C d. Option B