ABC Manufacturing Company prepays its insurance coverage for a two-year period. The premium for the two years is $2.800 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 $1,120 $280 Option B $280 $1.120 Option C $2,240 $560 Option D $560 $2,240 Select one: O a. Option A O b. Option C O c. Option B O d. Option DB company is a bike manufacturer. Which costs will change with a decrease in activity within the relevant range? Select one: O a. Total fixed costs and total variable costs. O b. Unit fixed cost and total variable costs. O c. Unit variable cost and unit fixed cost. O d. Unit fixed cost and total fixed costs