Reed Company Incurred Actual Overhead Costs of $640,000 for the Year

Reed Company incurred actual overhead costs of $640,000 for the year. A budgeted factory-overhead rate of 210 percent of direct-labour cost was determined at the beginning of the year. Budgeted factory overhead was $630,000, and budgeted direct-labour cost was $300,000. Actual direct-labour cost was $320,000 for the year. The disposition of the variance, assuming an immaterial amount, would include a

A) debit to Cost of Goods Sold for $32,000.
B) credit to Cost of Goods Sold for $32,000.
C) debit to Cost of Goods Sold for $10,000.
D) credit to Cost of Goods Sold for $10,000.