A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is $2,100 and is paid at the beginning of the first year. Sixty percent of the premium applies to manufacturing operations and forty percent applies to selling and administrative activities. What amounts should be considered product and period costs respectively for the first year of coverage? 
Definitions:
Everyday Intelligence
Practical intelligence that involves skills and abilities used in daily life situations.
Sternberg
Refers to Robert Sternberg, a psychologist known for his theories on intelligence, creativity, wisdom, and love.
Creative Intelligence
An aspect of intelligence involving the ability to produce novel and valuable ideas or solutions.
Practical Intelligence
The ability to solve everyday problems by utilizing knowledge gained from experience rather than through formal academic instruction.
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