The following annual amounts pertain to the Wolf Company:

Estimated Overhead Costs $101,988

Estimated Direct Labor hours 67,992

If actual overhead costs for the year amounted to $106,000 and actual direct labor worked amounted to 70,000 hours, the year-end adjustment necessary to close the

Manufacturing Overhead account would

Multiple Choice

• decrease the amount of cost of goods sold .
• not affect the amount of cost of goods sold.
• increase the amount of cost of goods sold.
• There would be no adjusting entry at the end of the accounting period.