At the end of the year, Pryor Company provided the following actual information:
Overhead........................$ 913,000
Direct labour cost...............1,214,400
Pryor uses normal costing and applies overhead at the rate of 75 percent of direct labour cost. At the end of the year, Cost of Goods Sold (before adjusting for any overhead variance) was $1,780,000.
Required:
1. Calculate the overhead variance for the year.
2. Dispose of the overhead variance by adjusting Cost of Goods Sold.