17) Flagler, 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 $590,000 in a year when manufacturing overhead was underapplied by $15,000. If sales revenue totaled $1,400,000, determine (1) Flagler's adjusted cost of goods sold and (2) gross margin Adjusted Cost of Goods Sold $ 575,000 $ 575,000 $ 590,000 $ 605,000 $ 605,000 Gross Margin $ 810,000 $ 825,000 $ 810,000 $ 795,000 $ 810,000 A) Choice A B) Choice B C) Choice C D) Choice D E) Choice E