Assuming that the entire amount of an overapplied overhead of $9,300 is closed out to cost of goods sold, what would be the effect of the overapplied overhead on the company's income statement for the period?

A) Gross margin would increase by $9,300.

B) Net income would decrease by $9,300.

C) Gross margin would decrease by $9,300.

D) The income statement would be unaffected.

E) Both A and B are correct.