# Cole Laboratories makes and sells a lawn fertilizer called Fastgro. The company...continues

###### Question:

Cole Laboratories makes and sells a lawn fertilizer called Fastgro. The company has developed standard costs for one bag of Fastgro as follows:
Standard Standard Cost
Quantity per bag
Direct material 20 pounds $8.00 Direct labor 0.1 hours$1.10
Variable overhead 0.1 hours $0.40 The company had no beginning inventories of any kind on January 1. Variable overhead is applied to production on the basis of standard direct-labor hours. DuringJanuary, the company recorded the following activity: • Production of Fastgro: 4,000 bags • Direct materials purchased: 85,000 pounds at a cost of$32,300
• Direct-labor worked: 390 hours at a cost of $4,875 • Variable overhead incurred:$1,475
• Inventory of direct materials on January 31: 3,000 pounds
1. The labor efficiency variance for January is
A. $110 F. B.$130 U.
C. $475 F. D.$350 U.
**Please SHOW HOW to get this

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