Parnell Company prepared its income statement for internal use. How would amounts for cost of goods sold and variances appear 

o Cost of goods sold would be at standard costs, and variances would be reported separately. 

o Cost of goods sold would be combined with the variances, and the net amount reported at actual cost. 

o Cost of goods sold would be at actual costs, and variances would be reported separately. 

o Cost of goods sold would be combined with the variances, and the net amount reported at standard cost.