Use the following information to answer the next two questions At the beginning of its year of operation, Usiku Inc. prepaid in advance its insurance coverage for a three-year period. The premium for the three years is $2,700.80% of the premium applies to manufacturing operations and 20% applies to selling and administrative activities. In the first year, Usiku produced 10,000 units and sold 7,000 units. In the second year, Usiku produced 10,000 units and sold 12,000 units. 7. What amounts of the insurance premium should be expensed in the income statement and the amount that should be inventoried in the balance sheet for the second year under absorption costing system? ??AmountExpensed 7?AmountInventoried 8. What amounts of the insurance premium should be expensed in the income statement and the amount that should be inventoried in the balance sheet for the second year under variable costing system