Overhead Variance (Over- or Underapplied), Closing to Cost of Goods Sold

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

Overhead	$456,500
Direct labor cost	607,200

Ilberg 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 $856,000.

Required:

1. Calculate the overhead variance for the year. $ overapplied

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