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newco Chapter 10 assignments 2 operates a residential landscaping business in an affluent suburb of St. Louis In an effort to provide quality ana service,

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newco Chapter 10 assignments 2 operates a residential landscaping business in an affluent suburb of St. Louis In an effort to provide quality ana service, he has concentrated solely on the design and installation of upscale landsc fountains, and lightingl With his clients continually requesting addtionel services, Sal recently expanded into lawn maintenance, including fertlization. aping plans (e g. trees, shrubs 833 points Skioped The following deta relate to his first year's experience with 56 fertizsetion dients . Each client required six applications throughout the year and was billed $4100 per application . Sal purchased 5,100 pounds of Type 1 fertilizer at $0.54 per pound and 10,000 pounds of Type i fertiizer at $0.41 per eBook applications involved Type Il ferblizer pound. Actul usage amounted to 3,210 pounds of Type I and 7850 pounds of Type rA new, part-tme employee wes hired to spread the fertilizer Sal had to pay premium wages of $1.60 per hour because of a very tight labor market, the employee logged a total of 167 hours at client residences Based on previous knowledge of the operation, articles in trade journals, and conversations with other landscapers Sal established the following standards ReferencE Fertizer chase price per pound TypeL$0.5t Type ll, $0.45 Fertilizer usage: 41 pounds per application Typical hourly wage rate of landscape personnel: $9.30 Labor time per application: 40 minutes The operation did not go as smoothly as planned, with customer complaints ectually much higher than expected Required 1 Compute Sal's direct-material variances for each type of fertlizer 2. Compute the direct-iabor variances. 3-a. Compute the actual cost of the client applications (Note: Exclude any ferblizer in inventory, as remaining ferblizer can be used next year) 3-b. Calculate the profit or loss of Sal's new lawn ferblization service 4. On the basis of the variances that you computed in parts (0 and 2) was the new service a success from an overall cost-control perspective? S. Should the fertlizer service be continued next year? Complete this question by entering your answers in the tabs below Req 1 Req 2 Req 3AReq 38 Req 4 Req 5 Compute Sal's direct-material variances for each type of fertilizer. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (Le, zero variance). Round your intermediate calculations and final answers to 2 decimal places.) Show less A Purchase price Req 2 >

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