At the beginning of the year, Olivar Company estimated the following:

Overhead .......$216,000

Direct labor hours ......80,000

Olivar uses normal costing and applies overhead on the basis of direct labor hours. For the month of January, direct labor hours were 7,950. By the end of the year, Olivar showed the following actual amounts:

Overhead ......$226,000

Direct labor hours ......82,600

Assume that unadjusted Cost of Goods Sold for Olivar was $235,670.

Required:

1. Calculate the predetermined overhead rate for Olivar.

2. Calculate the overhead applied to production in January.

3. Calculate the total applied overhead for the year. Was overhead over- or underapplied? By how much?

4. Calculate adjusted Cost of Goods Sold after adjusting for the overhead variance.