Answer:
Explanation:
First find out the amount of money that pertains to the first year:
= 2,400 / 3 years
= $800
Out of the $2,400, $800 is the payment for the year.
Product cost is the portion that would go towards manufacturing operations:
= 70% * 800
= $560
Period cost is the cost that applies to the selling and administrative activities:
= 30% * 800
= $240