A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is P3,000 and is paid at the beginning of the first year. Three-fourths of the premium applies to factory operations and one-fourth applies to selling and administrative activities. The amounts of product and period costs respectively for the first year of coverage were: a. P250; P750 b. P750; P250 c. P1,000; P0 d. P2,250;P750

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A:

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