Which method is more accurate for disposing of underapplied or overapplied overhead?

Group of answer choices

Close the underapplied overhead to finished goods inventory.

Close the underapplied or overapplied to cost of goods sold.

Close the underapplied or overapplied overhead to work in process.

Prorate the underapplied or overapplied overhead to cost of goods sold, work in process inventory, and finished goods inventory.