E2-1 Prepare entries for factory labor The gross earnings of the factory workers for Larkin Company during the month of January are $76,000. 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 accumulated 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 the factory labor to production. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?"| (a) Prepare the entry to record the factory labor costs for the month of January Account Value Account Value Account Account Value Value (b) Prepare the entry to assign the factory labor to production Account Account ? 7 Value Account After you have completed E2-1, consider the following additional question 1. Assume that factory wages changed and employer's payroll taxes changed to $78,000 and $9,360 respectively Also assume that 80% of total labor costs is related to direct labor. Revise the journal entries to reflect these changes