At the end of the year, Estes Company provided the following actual information:

Overhead........................$412,600

Direct labor cost..................532,000

Estes uses normal costing and applies overhead at the rate of 75% of direct labor cost. At the end of the year, Cost of Goods Sold (before adjusting for any overhead variance) was $1,670,000.

Required:

1. Calculate the overhead variance for the year.

2. Dispose of the overhead variance by adjusting Cost of Goods Sold.