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

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

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

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

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