Catherman Corporation Manufactures One Product

Multiple Choice

Catherman Corporation manufactures one product. It does not maintain any beginning or ending 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.
During the year, the company produced and sold 32,400 units at a price of $42.30 per unit. Its standard cost per unit produced is $36.90 and its selling and administrative expenses totaled $102,000. The company does not have any variable manufacturing overhead costs and 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) $34,300
B) ($34,300)
C) $66,810
D) ($66,810)