Required:

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

Please show process on how the values were achieved.

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