Eli Uses a Standard Costing System $\quad\quad\quad \$ 260$

Multiple Choice

Eli uses a standard costing system. At the end of the fiscal year, only the following variance accounts had balances: Material Price Variance $\quad\quad\quad \$ 260$ (debit)
Material Quantity Variance $\quad\quad \$ 35$ (credit)
Labor Efficiency Variance $\quad\quad \$ 65$ (credit) Assuming these amounts are not considered significant, which one of the following will be part of the journal entry to close these accounts?

A) Credit to Cost of Goods Sold for $160
B) Debit to Manufacturing Overhead Variances for $260
C) Debit to Cost of Goods Sold for $160
D) Credit to Manufacturing Overhead Control for $160
Material from the appendix to the chapter is marked with an asterisk (*) .