Partially completed T-accounts and additional information for Pine Ridge Corporation for the month of February follow:

Manufacturing Overhead Control			Applied Manufacturing Overhead
160,000				(a)_______________

Raw (Direct*) Materials			Work-in-Process
Beginning 50,000			Beginning 100,000
(b) ________	200,000		* _________200,000
			* Direct labor 210,000	350,000
			* _________140,000
Ending 100,000			Ending 300,000

Finished Goods			Cost of Goods Sold
Beginning 110,000
(c)__________	(d) ___________		(e) _____________
Ending 240,000

* All raw materials are direct materials.

Which of the following statements is incorrect?

	A.	Direct material costs are $250,000.
	B.	Manufacturing overhead is under-applied.
	C.	If manufacturing overhead is applied based on direct materials cost, the predetermined overhead rate is 0.70.
	D.	Applied manufacturing overhead cost is $140,000