A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is $2,400 and is paid at the beginning of the first year. Seventy percent of the premium applies to manufacturing operations and thirty percent 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)	$800	$0
B)	$0	$800
C)	$560	$240
D)	$240	$560

Answer rating: 100% (QA)

Option C ie Product Cost 560 Period Cost 240 Premium Paid 2400 Period for which premium is pai... View the full answer