Phoenix Company Incurred Actual Overhead Costs of $80,000 for the Year.A

Phoenix Company incurred actual overhead costs of $80,000 for the year.A budgeted factory-overhead rate of 210% of direct-labor cost was determined at the beginning of the year.Budgeted factory overhead was $78,750, and budgeted direct-labor cost was $37,500.Actual direct-labor cost was $40,000 for the year.The disposition of the variance, assuming a material amount, would include a_____.

A) debit to Factory Department Overhead Control for $4,000
B) credit to Factory Department Overhead Control for $1,250
C) debit to Cost of Goods Sold for $4,000
D) credit to Cost of Goods Sold for $1,250