Your company, Bluestar Conglomerate, Inc., has won funding from Shark Tank. This company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and the standards per unit are as follows:

Direct materials per unit: 10 pounds at $20 per pound

Direct labor per unit: 4 hours at $17 per hour

Variable overhead: 4 hours at $10 per hour

Budgeted Fixed advertising expenses: $6000

Budgeted Fixed sales expenses: $8000

Budgeted Fixed shipping expenses: $9000

The planning budget for January 2022 was based on producing and selling 1000 units. However, during January, the company actually produced and sold 1100 units, at a selling price of $600 per unit, and incurred the following costs:

1. Purchased 10,200 pounds of direct materials at a cost of $19 per pound. All of this material was used in production.
2. Direct laborers worked 4,300 hours at a rate of $16.00 per hour
3. Total variable manufacturing overhead for the month was $49,000
4. ACTUAL fixed costs: Total fixed advertising expenses were $7,000. Total fixed sales expenses were $8,000. Total fixed shipping expenses were $9,900.

Question:

1. What direct labor cost would be included in the companys flexible budget for January?
2. What is the labor spending variance for January? Favorable or Unfavorable?