Sheffield's Cup Cakes applies overhead based on direct labor hours. In June, Sheffield applied overhead of $$98770$ and incurred

overhead of $$97730.$ For the year, Sheffield expected total manufacturing overhead of $$1360000.$ To dispose of the difference

between applied and incurred overhead, Sheffield should

decrease Cost of Goods Sold by $$2080.$

increase Cost of Goods Sold by $$3120.$

increase Cost of Goods Sold by $$1040.$

decrease Cost of Goods Sold by $$1040.$