A company estimates (1) it will produce and sell 5,500 units during the relevant period, (2) its manufacturing overhead for the period will be $240,000, (3) its machine hours will be 8,000 hours, and (4) its direct labor hours will be 12,000. The company allocates its manufacturing overhead based on the amount of direct labor hours. In the period the company's actual figures were: Units Sold Manufacturing overhead Machine hours Direct labor hours 5,000 units $220,000 7,500 11,500 What adjustment is made by the company at the end of the period? a. $20,000 should be subtracted from COGS b. $10,000 should be subtracted from COGS c. $10,000 should be added to COGS d. $20,000 should be added to COGS