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 $901,000. Required: 1. Calculate the overhead variance for the year. overapplied 2. Dispose of the overhead variance by adjusting Cost of Goods Sold. Adjusted COGS $ Predetermined Overhead Rate, Overhead Application At the beginning of the year, Ilberg Company estimated the following costs: Overhead $416,000 Direct labor cost 520,000 Ilberg uses normal costing and applies overhead on the basis of direct labor cost. (Direct labor cost is equal to total direct labor hours worked multiplied by the wage rate.) For the month of December, direct labor cost was $40,900. Required: 1. Calculate the predetermined overhead rate for the year. Enter the percentage answer as a whole number. % of direct labor cost 2. Calculate the overhead applied to production in December