A company has performed variable overhead variance analysis and has the following information:

Actual overhead costs of $$242,000$

Flexible overhead budget costs of $$192,000$

Overhead spending variance costs of $$22,000$ Favorable

Overhead efficiency variance costs of $$72,000$ Unfavorable

Overhead flexible$-$budget variance of $$50,000$ Unfavorable

At the end of the accounting period, assuming the variable overhead variances are minor, which journal entries describes how they will be written off?

Multiple Choice

Cost of Goods Sold: Debit $$22,000$; Variable Overhead Spending Variance: Debit $$50,000$; Variable Overhead Efficiency Variance: Credit $$72,000.$

Cost of Goods Sold: Debit $$72,000$; Variable Overhead Spending Variance: Credit $$50,000$; Variable Overhead Efficiency Variance: Credit $$22,000.$

Variable Overhead Spending Variance: Debit $$22,000$; Variable Overhead Efficiency Variance: Debit $$50,000$; Cost of Goods Sold: Credit $$72,000.$

Variable Overhead Spending Variance: Debit $$50,000$; Variable Overhead Efficiency Variance: Debit $$22,000$; Cost of Goods Sold: Credit $$72,000.$