B&B uses a predetermined manufacturing overhead rate based on machine-hours. for the month of October:

Estimated overhead cost............300000

Actual overhead cost.................375000

Estimated machine-hours...........10000

Actual maching hours................11000

before disposition of the underapplied/overapplied overhead, balances from B&B's accounting records on October 30th are as follows:

sales.....................................1,200.000

cost of goods sold...................720000

Inventories:

Work in process.........................80000

Finished Goods..........................100000

Overapplied or underapplied overhead is allocated to applicable inventories and cost of goods sold based on month end balances. In B&B's October income statement, it should report cost of goods sold of:

A. $ 684500

B. $ 720000

C. $682500

D. $756000

E. $ 757000