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. a newcor Chapter 10 assignments Sa 2 es a residential landscaping business in an affluent suburb of St. Louis. In an effort to provide

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. a newcor Chapter 10 assignments Sa 2 es a residential landscaping business in an affluent suburb of St. Louis. In an effort to provide quality hes concentrated solely on, the design and installation or upscale landscapng plam .eesmm service, he ountains, and lightinglt With his clients continualy requesting addieional services, Sal recently expanded into lewn The following data relate to his st year's experience with 56 fertization cients. . Each client required s 8.33 Slo six applications throughout the year and was billed $4100 per application Sal purchased 5,100 pounds of Type I fertilizer at s0.54 per pound and 10100 pounds of Type I ferilizer at 50.41 per Besed on previous knowledge of the operation, articles in trade journals, and conversations with other landscapers Two applications involved Type I fertilizer, which contains a special ingredient for weed control. The remaining four eBook applications involved Type Il fertilizer pound. Actual usage amounted to 3,210 pounds of Type 1 and 7,850 pounds of Type ll because of a very tight labor market the Sal established the following standards rintA new part-time employee was hired to spread the fertilizer. Sal had to pay premium wages of $11.60 per hour employee logged a total of 167 hours at client residences Reference Fertilzer purchase price per pound Type l, $05t Type Fertilizer Typical hourly wage rate of landscape personnet $910 Labor Sime per application: 40 minutes $0.45 usage: 41 pounds per application The operation did not go as smoothly as planned, with customer complaints actuaily much higher than expected. Required 1 Compute Sals direct-material variances for each type of tertilizer 2. Compute the direct-labor variances. 3a. Compute the actual cost of the dient applications (Note: Exclude any fertilizer in inventory, as remaining fertlizer can be used next year) 3-b. Calculete the profit or loss of Sal's new lawn fertlization service 4. On the besis of the variances that you computed in parts () and (2) was the new service a success from an overall cost-control perspective? S. Should the fertilizer service be continued next year? Complete this question by entering your answers in the tabs below. 2Req 3A Req 38 Req 4 Req S Compute the direct-labor variances. (Indicate the effect of each variance by selecting Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance), Do not round intermediate calculations and round your final answer to 2 decimal places.) Show less

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