At the end of the year, Kreskin Company provided the following actual information:
Overhead .....$456,500
Direct labor cost .....607,200
Kreskin uses normal costing and applies overhead at the rate of 75 percent of direct labor cost. At the end of the year, Cost of Goods Sold (before adjusting for any overhead variance) was $890,000.

Required:
1. Calculate the overhead variance for the year.
2. Dispose of the overhead variance by adjusting Cost of Goods Sold.