Ferrero Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. The company has provided the following information: Actual sales 35,800 units Actual selling price $ 40.40 per unit Standard cost $ 33.30 per unit Actual selling and administrative expenses $ 121,000 The company does not have any variable manufacturing overhead costs and it recorded the following variances during the year Materials price variance Materials quantity variance Labor rate variance Labor efficiency variance Fixed manufacturing overhead budget variance Fixed manufacturing overhead volume variance $ 76,960 F $ 600U $ 21,776 F 5 28,800 $ 15,000 F $ 41,580 F When the company closes its standard cost variances, the cost of Goods Sold will increase (decrease) by: Multiple Choice O ($125,916) O. $125,916 O ($56,580) $56,580