5. Spectrum Manufacturing had the following information in its records at the end of the year Predetermined overhead rate 125% of direct labor costs Estimated direct labor costs $87,500 Actual direct labor costs $84,000 Total actual manufacturing overhead costs incurred during the year was $102,000. If the company closes any over- or under-applied overhead to Cost of Goods Sold, how will the balance of Cost of Goods Sold change after this closing entry? A. Increase by $3,000 B. Decrease by $3,000 C. Increase by $7,375 D. Decrease by $7,375