If a company has significant variable overhead spending and efficiency variances, then they should do which of the following when preparing journal entries?

Multiple Choice

Prorate the variances across Accumulated Depreciation, Finished Goods Control, and Cost of Goods Sold Control.

Prorate the variances across Accumulated Depreciation, Accumulated Work$-$in$-$Process, and Cost of Goods Sold.

Prorate the variances across Work$-$in$-$Process Control, Finished Goods Control, and Cost of Goods Sold.

Record all variances in the Finished Goods Control account.