How Should an Efficiency Variance That Is Material in Amount

Multiple Choice

How should an efficiency variance that is material in amount be treated at the end of an accounting period?

A) Reported as a deferred charge or credit
B) Allocated among work in process inventory,finished goods inventory,and cost of goods sold
C) Charged or credited to cost of goods manufactured
D) Allocated among cost of goods manufactured,finished goods inventory,and cost of goods sold