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	$423,600
Direct labor cost	532,000

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 $914,000.

Required:

1. Calculate the overhead variance for the year. _____________ overapplied? underapplied?

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