Answer:
COGS will decrease by 2,597 dollars as will decrease by the proration of the factory overhead
Explanation:
we do cross mutiplication to solve for the COGS and FG based on actual overhead
<em> applied actual</em>
<em>COGS</em> 57,500 54,903 *A
<em>FG</em> <u> 20,000 </u> <u> 19,067 </u> *B
<em>Total</em> 77, 500 74,000
*A) 57,500 x 74,000/77,500 = 54,903
*B) 20,000 x 74,000/77,500 = 19,097
Decrease in COGS 57,500 - 54,903 = 2,597