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

Overhead: 456500

Direct Labor: 607,200

Ilberg uses normal costing and applies overhead at the rate of 75% of direct labor cost. At the end of the year, the Cost of Goods Sold (before adjusting for any overhead variance) was $929,000.

Required:

1. Calculate the overhead variance for the year.

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

Answer rating: 100% (QA)

The actual direct labor cost is 607200 The overhead allocat... View the full answer