Overhead Variance (Over- or Underapplied), Closing to Cost of Goods Sold At the end of the year, liberg Company provided the following actual information: Overhead Direct labor cost $423,600 $32,000 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 $850,000. Required: 1. Calculate the overhead variance for the year. -2,000 X overapplied 2. Dispose of the overhead variance by adjusting Cost of Goods Sold. Adjusted COGS Feedback Check My Work Partially correct 665,000 X