Overhead Variance (Over- or Underapplied), Closing to Cost of Goods Sold 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. $ 2,000 X Underapplied 2. Dispose of the overhead variance by adjusting Cost of Goods Sold