Comprehensive Variance Analysis w/ Journal Entries The Morocco Company uses a standard cost accounting system and estimates production for the year to be 60,000 units. The company's variable overhead costs (standard rate; (SR)) is $0.50 per direct labor hour The company's product has a standard cost of $30.00 per unit. Included in the $30.00 is $13.20 for direct materials (3 yards; $4.40 per yard) and $12.00 of direct labor (2 hours: $6.00 per hour). Production information for the month of March follows: Required: Number of units produced Materials purchased (13,300 yards) Materials used in production (yards) Variable overhead costs incurred Actual direct labor cost incurred ($6.25/hour) 4,500 $ 61,600 13,300 $ 4,380) $ 57,750 $ 2,310 (U) $ 1,440 (U) Direct labor rate variance Direct labor efficiency variance Prepare the journal entries to record the following: a. b. C e Compute the materials price and quantity variances. Compute the variable overhead rate and efficiency variances. Record the purchase and use of direct materials and related variances. Record the direct labor costs and the related variance d. Record actual variable overhead costs and variable overhead applied e. Closing of variable overhead accounts and recognizing variances