Escuchar Products, a producer of DVD players, has established a labor standard for its productdirect labor: 2

Question:

Escuchar Products, a producer of DVD players, has established a labor standard for its product—direct labor: 2 hrs at $9.65 per hour. During January, Escuchar produced 12,800 boards. 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 for all activities relating to labor.