Molano Corporation Has Provided the Following Data Concerning Manufacturing Overhead

Molano Corporation has provided the following data concerning manufacturing overhead for June: The company's Cost of Goods Sold was $255,000 prior to adjusting for any underapplied or overapplied overhead. Which of the following statements is true?

A) Manufacturing overhead was underapplied by $7,000; Cost of Goods Sold after adjusting for any underapplied or overapplied overhead is $248,000
B) Manufacturing overhead was overapplied by $7,000; Cost of Goods Sold after adjusting for any underapplied or overapplied overhead is $248,000
C) Manufacturing overhead was underapplied by $7,000; Cost of Goods Sold after adjusting for any underapplied or overapplied overhead is $262,000
D) Manufacturing overhead was overapplied by $7,000; Cost of Goods Sold after adjusting for any underapplied or overapplied overhead is $262,000