Andruschack Corporation uses activity-based costing to determine product costs for external financial reports. Overapplied or underapplied overhead is closed to the Cost of Goods Sold account at the end of each year. The company has provided the following data concerning its activity-based costing system:

Activity Cost Pools (and Activity Measures)	Estimated Overhead Cost
Machine related (machine-hours)	$213,000
Batch setup (setups)	$339,000
General factory (direct labour-hours)	$193,200

		Expected Activity
Activity Cost Pools	Total	Product X	Product Y
Machine related	10,000	3,000	7,000
Batch setup	10,000	4,000	6,000
General factory	14,000	7,000	7,000

If the actual overhead costs of the three pools totaled $746,000 and actual activity was equal to expected activity, what would be the required entry to the Cost of Goods Sold account?

Multiple Choice

• $600 credit.

• $600 debit

• $800 credit.

• $800 debit.