Kings Company Incurred Actual Overhead Costs of $305,000 for the Year.A

Kings Company incurred actual overhead costs of $305,000 for the year.A budgeted factory-overhead rate of 150% of direct-labor cost was determined at the beginning of the year.Budgeted factory overhead was $300,000, and budgeted direct-labor cost was $200,000.Actual direct-labor cost was $205,000 for the year.The disposition of the factory-overhead variance for the year assuming an immaterial amount) was a_____.

A) debit to Cost of Goods Sold for $2,500
B) credit to Cost of Goods Sold for $2,500
C) debit to Cost of Goods Sold for $5,000
D) credit to Cost of Goods Sold for $5,000