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Gyro Company uses a predetermined overhead rate based on direct labour hours $($DLHs$)$ to apply manufacturing overhead to jobs. At the beginning of the year, the company estimated manufacturing overhead would be $$200,000$ and DLHs would be $20,000.$ The actual figures for the year were $$215,000$ for manufacturing overhead and $21,000$ DLHs$.$

What entry would Gyro Company make to dispose of the manufacturing overhead variance?

Select one:

A$.$ Debit Manufacturing Overhead $$5,000$; Credit Cost of Goods Sold $$5,000$

B$.$ Debit Manufacturing Overhead $$10,000$; Credit Cost of Goods Sold $$10,000$

C$.$ Debit Cost of Goods Sold $$10,000$; Credit Manufacturing Overhead $$10,000$

D$.$ Debit Cost of Goods Sold $$5,000$; Credit Manufacturing Overhead $$5,000$