Escuchar Products, a producer of DVD players, has established a labor standard for its productdirect labor: 2 hrs at $9.65 per hour. During January, Escuchar produced 12,800 DVD players. The actual direct labor used was 25,040 hours at a total cost of $245,392. Required: 1. Compute the labor rate and efficiency variances. 2. Prepare journal entries on Jan. 31 for all activities relating to labor.