Assume that a company uses a standard cost system that closes all variances to cost of goods sold at the end of the period. During a recent period, it recorded the following variances: Materials price variance Materials quantity variance Labor rate variance Labor efficiency variance Fixed overhead budget variance Fixed overhead volume variance $ 3,200 F $ 4,800 U $ 6,500 F $12,000 F $ 1,500 U $ 9,200 F What will be the effect on cost of goods sold when all of these variances are closed at the end of the period? Mulie Els it will increase by $24600 It wil decrease by $24,600 It will increase by $25,400 it wil decrease by $26.400