100% correctCole Laboratories makes and sells a lawn fertilizer called Fastgro.T

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100% correctCole Laboratories makes and sells a lawn fertilizer called Fastgro.The company has developed standardcosts for one bag of Fastgro as follows:Standard Standard CostQuantity per bagDirect material 20 pounds $8.00Direct labor 0.1 hours $1.10Variable overhead 0.1 hours $0.40The company had no beginning inventories of any kind onJanuary 1. Variable overhead is applied toproduction on the basis of standard direct-labor hours.During January the company recorded the followingactivity:Production of Fastgro: 4000 bagsDirect materials purchased: 85000 pounds at a cost of$32300Direct-labor worked: 390 hours at a cost of $4875Variable overhead incurred:$1475Inventory of direct materials onJanuary 31: 3000 pounds

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