Fletcher, Inc. 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 $614,000 in a year when manufacturing overhead was underapplied by $22,400. If sales revenue totaled $1,770,000, determine (1) Fletcher's adjusted cost of goods sold and (2) gross margin.

Adjusted Cost of Goods Sold	Gross Margin
A. $ 591,600	$ 1,156,000
B. $ 591,600	$ 1,178,400
C. $ 614,000	$ 1,156,000
D. $ 636,400	$ 1,133,600
E. $ 636,400	$ 1,156,000

Choice A

Choice B

Choice C

Choice D

Choice E