1. A manufacturing company prepays its insurance coverage for a three-year per

1. A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is
$2700 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 and period costs respectively for the first year of coverage?
Option A

Option B

Option C

Option D

2. Hayne Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data
for the most recently completed year appear below: The predetermined overhead rate for the recently completed year was closest to:

$7.89

$30.95

$24.52

$32.41