Escuchar Products, a producer of DVD players, has established a labor standard for its productdirect labor: 2 hrs at $9.45 per hour. During January, Escuchar produced 12,300 DVD players. The actual direct labor used was 24,040 hours at a total cost of $230,784.

Required:1.Compute the labor rate and efficiency variances.2.Prepare journal entries on Jan. 31 for all activities relating to labor.

1. Compute the labor rate and efficiency variances.

Labor rate variance Labor efficiency variance

2. Prepare journal entries on Jan. 31 for all activities relating to labor. Refer to the Chart of Accounts for the exact wording of account titles.