Which Statement Is True Concerning an Insignificant Material Quantity Variance

Multiple Choice

Which statement is true concerning an insignificant material quantity variance in a standard costing system?

A) It is recorded in the accounting records as a credit when the material is ordered.
B) It is closed to the manufacturing overhead account at the end of the period.
C) It is recorded at the actual cost of materials used times the standard quantity of materials allowed.
D) It is closed to the cost of goods sold account at yearend.