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 $ 76,960 F Materials quantity variance $ 600 U Labor rate variance $ 21,776 F Labor efficiency variance 28,800 U Fixed manufacturing overhead budget variance $ 15,000 F Fixed manufacturing overhead volume variance $ 41,580 F When the company closes its standard cost variances, the cost of Goods Sold will increase (decrease) by Multiple Choice ($125,916) ($56,580) $125,916 $56.580