Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
Before prorating overhead, the current period overhead component of Cost of Goods Sold for Wilmington Company was $230,000, while the current period overhead component of the ending inventory was $80,000. Manufacturing overhead of $310,000 was applied during the period, whereas $296,000 was actually incurred. Wilmington has no Work-in-Process inventory at the end of the period.
-By how much will Wilmington Company's operating income differ if the manufacturing-overhead variance is closed to Cost of Goods Sold instead of prorated between inventory and cost of goods sold?

A) $14,000 higher
B) $3,613 lower
C) $3,613 higher
D) $11,188 lower