Escuchar Products, a producer of DVD players, has established a labor standard for its productdirect labor: 1 hrs at $8.90 per hour. During January, Escuchar produced 14,300 DVD players. The actual direct labor used was 13,740 hours at a total cost of $124,347.

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