At the end of the year, overhead applied was $3,751,000. Actual overhead was $3,431,000. Closing over/underapplied overhead into Cost of Goods Sold would cause net income to

a. increase by $640,000

b. increase by $320,000

c. decrease by $640,000

d. decrease by $320,000

At the end of the year, overhead applied was $42,000,000. Actual overhead was $40,300,000. Closing over/underapplied overhead into Cost of Goods Sold would cause net income to

a. increase by $3,400,000

b. decrease by $3,400,000

c. increase by $1,700,000

d. decrease by $1,700,000