Variances for a service business Chemi-Gro Company performs lawn-spraying services using two types of materials. Greenway is a chemical fertilizer and Greenban is a combination of fertilizer and weed killer. The company has established the following labor and material stan-

dards for its services:

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Labor per 1,000 sq. ft. of lawn... Greenway per 1,000 sq. ft. of lawn Greenban per 1,000 sq. ft. of lawn.... .2 hrs. @ $6.80/hr. 3 gals. @ $2.60/gal. 4 gals. @ $2.50/gal. Each spraying job requires some setup time regardless of lawn size. The average setup time per job is estimated at .5 hour for travel and .25 hour for setting up and putting away equipment on each job. Following are data on spraying performed in August: No. of lawns sprayed Total square feet of lawn Greenway 452 Greenban 316 3,600,000 2,800,000 Total hours of labor time 1,140 760 Total labor cost ... $7,923 $4,978 Total gallons of materials used 10,100 11,000 Total material cost...... $25,800 $28,000 REQUIRED a. Compute all the material variances that data permit. b. Compute all the labor variances that data permit. Assume actual setup times were the same as standard.