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ag Exercise 4 The renowned landscape gardener Archi Jardin specializes in the design and construction of gardens for residential homes. As Archi Jardin regularly
ag Exercise 4 The renowned landscape gardener Archi Jardin specializes in the design and construction of gardens for residential homes. As Archi Jardin regularly receives requests from customers to also take care of the maintenance of their garden, Jardin has recently decided to expand his activities with the maintenance of lawns, including treating the grass with fertilizer. The following data relates to his treatments with fertilizer for the first 55 customers during the past year: - - For each client, 6 fertilizer treatments are required per year, for which Archi Jardin charges 40 EUR per treatment. Archi Jardin has purchased 1,000 kg of fertilizer at 5.10 EUR per kg and 600 kg via an urgent last minute order at 6.00 EUR per kg. Actual consumption was 1,600 kg. Archi Jardin had to carry out the fertilizer treatments himself because he was unable to recruit an employee due to a very tight labor market. His hourly wage is 20 EUR and he has worked a total of 190 hours in the clients gardens. Based on his knowledge of the sector, articles in specialized magazines and conversations with other garden architects, Archi Jardin set the following standards: Purchase price fertilizer: 5.00 EUR per kg Use of fertilizer: 5kg per treatment DLC: 10 EUR per DLH O Amount of DLH: 40 minutes per treatment Required: 1. Prepare a full variance analysis for the direct material and direct labour costs. Round any intermediate results to 2 decimal places. What could be possible explanations for the variances you find? 2. Calculate the profit of the fertilizing activity. per regard to the finan CS Gescand met CamScanner.com
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1 Variance Analysis for Direct Material and Direct Labor Costs Direct Material Variance Standard Quantity of Fertilizer 55 clients 6 treatments per cl...Get Instant Access to Expert-Tailored Solutions
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