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: 456500

Direct Labor: 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 $905,000.

Required:

1. Calculate the overhead variance for the year. $

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