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 Actual selling price Standard cost Actual selling and administrative expenses 35,800 units $ 40.40 per unit $ 33.30 per unit $ 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 $ 600 U $ 21,776 F $ 28,800 U $ 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 $125,916 O O ($125,916) $56,580 ($56,580)