Amos, Inc. uses a standard cost system with the following labor standards for one unit of product: standard hours 0.3 and standard wage rate $8. During January, Amos incurred 5,767 hours of direct labor and paid $45,575 in wages in production of 18,900 units. Calculate the direct labor rate and efficiency variances and indicate whether the variances are favorable or unfavorable.

Direct labor rate variance		$	favorable
Direct labor efficiency variance		$	unfavorable