E20-1 The gross earnings of the factory workers for Vargas Company during the month of January are $66,000. The employer's payroll taxes for the factory payroll are $8,000. The fringe benefits to be paid by the employer on this payroll are $6,000. Of the total accumu. lated cost of factory labor, 85% is related to direct labor and 15% is attributable to indirect labor. Instructions (a) Prepare the entry to record the factory labor costs for the month of January (b) Prepare the entry to assign factory labor to production