Isenberg Corporation Manufactures One Product

Multiple Choice

Isenberg Corporation manufactures one product.It does not maintain any beginning or ending Work in Process inventories.The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.The company does not have any variable manufacturing overhead costs.It recorded the following variances during the year:
When the company closes its standard cost variances,the Cost of Goods Sold will increase (decrease) by:

A) ($4,500)
B) $4,500
C) $96,955
D) ($96,955)