Fletcher Company disposes of under- or overapplied overhead at year-end as an adjustment to cost of goods sold. Prior to disposal, the firm reported cost of goods sold of $590,000 in a year when manufacturing overhead was underapplied by $15,000. If sales revenue totaled $1,400,000, determine (1) Fletcher's adjusted cost of goods sold and (2) gross margin. Adjusted Cost of Goods Sold Gross Margin A. $575,000 $810,000 B. $575,000 $825,000 C. $590,000 $810,000 D. $605,000 $795,000 E. $605,000 $810,000