DL variances; journal entries Information on Hanley's direct labor costs for January is as follows: Actual direct labor rate $7.50 Standard direct labor hours allowed 12,600 Actual direct labor hours 14,000 Labor rate variance $7,700 Favorable a. Compute the standard direct labor rate in January. $ b. Compute the labor efficiency variance in January. Note: Do not use a negative sign with your answer. Labor efficiency variance $ c. Prepare the journal entry to accrue direct labor cost and to record the labor variances for January. Note: Record any multiple debits or any multiple credits in alphabetical order by account name. Account To record labor variances Debit = Credit