Sanders Inc. has applied $$567,988$ of factory overhead to jobs. Actual factory overhead at the end of the year is $$575,000.$ The adjustment for over$-$ or underapplied factory overhead is

a$.$ $$7,012$ overapplied, increase Cost of Goods Sold

b$.$ $$7,012$ underapplied, increase Cost of Goods Sold

c$.$ $$7,012$ underapplied, decrease Cost of Goods Sold

d$.$ $$7,012$ overapplied, decrease Cost of Goods Sold