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Escuchar Products, a producer of DVD players, has established a labor standard for its productdirect...

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Accounting

Escuchar Products, a producer of DVD players, has established a labor standard for its productdirect labor: 1 hrs at $9.30 per hour. During January, Escuchar produced 13,700 DVD players. The actual direct labor used was 13,140 hours at a total cost of $124,173.

Required:

1. Compute the labor rate and efficiency variances.

2. Prepare journal entries on Jan. 31 for all activities relating to labor.

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