Buckeyes Company Incurred Actual Overhead Costs of $80,000 for the Year

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