Required

a. Prepare a cost variance analysis for each variable cost.

b. Prepare a fixed overhead cost variance analysis.

c. Prepare the journal entry to record the purchase and use of direct materials (assume materials are used as purchased and no inventory is maintained).

d. Prepare the journal entry for the recognition of direct labor.

e. Prepare the journal entry for incurring actual overhead.

f. Prepare the journal entry for the application of overhead to production.

g. Prepare the journal entry for closing of overhead accounts and recognizing variances.

h. Prepare the journal entry for transferring production to finished goods.

The Morocco Company uses a standard cost accounting system and estimates production for the year to be 60,000 units. At this volume, the company's variable overhead costs are $0.50 per direct labor hour. The company's single product has a standard cost of $30.00 per unit. Included in the $30.00 is $13.20 for direct materials ( 3 yards) and $12.00 of direct labor ( 2 hours). Production information for the month of March follows