At the end of the year, Kraisee Company provided the following actual information:

Overhead:                     $731,000
Direct labor cost:           918,000

Kraisee 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 $1,970,000.

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