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	$422,600
Direct labor cost	540,300

Ilberg uses normal costing and applies overhead at the rate of 80% of direct labor cost. At the end of the year, Cost of Goods Sold (before adjusting for any overhead variance) was $1,942,000.

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below.

Overhead Variance (Over- or Underapplied), Closing to Cost of Goods Sold
Ilberg uses normal costing. At the end of the year, Ilberg Company provided the following actual information:
DATA
Overhead	$422,600
Direct labor cost	$540,300
Unadjusted cost of goods sold	$1,942,000
"Predetermined overhead rate (% of direct labor cost)"	80%
Using formulas and cell references, perform the required analysis, and input your answers into the green cells in the Amount column. Select the corresponding choice in the dropdown in cell C14. Transfer the numeric results for the green entry cells (B14:B15) and the selected choice (C14) into the appropriate fields in CNOWv2 for grading.
Required:	Amount		Formulas
1. Overhead variance
2. Adjusted cost of goods sold

Required:

1.	Calculate the overhead variance for the year.
	$ overapplied
2.	Dispose of the overhead variance by adjusting Cost of Goods Sold.
	Adjusted COGS: $