Assume that a company uses direct labor dollars as the allocation base to compute its predetermined plantwide overhead rate of 140%. Also, assume the following information from the companys schedule of cost of goods manufactured, schedule of cost of goods sold, and its income statement:

Direct labor	$	65,000		Actual manufacturing overhead	$	84,000
Cost of goods manufactured	$	260,000		Selling and administrative expense	$	85,000

If the beginning finished goods inventory was $10,000, the ending finished goods inventory was $2,000, and net operating income was $8,000 then what is the sales?

Multiple Choice

• $334,000

• $354,000

• $324,000

• $374,000