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Amos, Inc. uses a standard cost system with the following labor standards for one unit of product: standard hours 0.2 and standard wage rate $8.

Amos, Inc. uses a standard cost system with the following labor standards for one unit of product: standard hours 0.2 and standard wage rate $8. During January, Amos incurred 3,667 hours of direct labor and paid $28,809 in wages in production of 17,800 units. Calculate the direct labor rate and efficiency variances and indicate whether the variances are favorable or unfavorable.

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