Woodhead Inc. manufactures one product. It does not maintain any beginning or ending inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. Its standard cost per unit produced is $37.45. During the year, the company produced and sold 24,400 units at a price of $47.40 per unit and its selling and administrative expenses totaled $92,000. The company does not have any variable manufacturing overhead costs. It recorded the following variances during the year:

Materials price variance $ 8,760 F
Materials quantity variance $ 550 U
Labor rate variance $ 27,885 U
Labor efficiency variance $ 17,200 F
Fixed manufacturing overhead budget variance $ 17,400 F
Fixed manufacturing overhead volume variance $ 18,900 F

When the company closes its standard cost variances, the Cost of Goods Sold will increase (decrease) by: