Sal Amato operates a residential landscaping business in an affluent suburb of St. Louis. In an effort to provide quality service, he has concentrated solely on the design and installation of upscale landscaping plans (e.g. trees, shrubs, fountains, and lighting) With his clients continually requesting additional services, Sal recently expanded into lawn maintenance, including fertilization The following data relate to his first year's experience with 57 fertilization clients. Each client required six applications throughout the year and was billed $42.00 per application . Two applications involved Type I fertilizer, which contains a special ingredient for weed control. The remaining four applications involved Type Il fertilizer Sal purchased 7,000 pounds of Type I fertilizer at $0.57 per pound and 12,000 pounds of Type Il fertilizer at $0.47 per pound. Actual usage amounted to 6.090 pounds of Type I and 8,800 pounds of Type II. A new part-time employee was hired to spread the fertilizer Sal had to pay premium wages of $13.50 per hour because of a very tight labor market, the employee logged a total of 205 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: Fertilizer purchase price per pound: Type I, 5070 Type II, 80,48 Fertilizer usage: 60 pounds per application Typical hourly wage rate of landscape personnel: $9.90 Labor time per application: 40 minutes The operation did not go as smoothly as planned, with customer complaints actually much higher than expected The operation did not go as smoothly as planned with customer complaints actually much higher than expected Chech Required: 1. Compute Sal's direct-material variances of each type of fertilizer. 2. Compute the direct-labor variances, 3-a. Compute the actual cost of the client applications. (Note: Exclude any fertilizer in inventory, as remaining fertilizer can be used next year) 3-b. Calculate the profit or loss of Sal's new lawn fertilization service. 4. On the basis of the variances that you computed in parts (1) and (2) was the new service a success from an overall cost-control perspective? 5. Should the fertilizer service be continued next year? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg JA Reg 35 Reg 4 Regs Compute Sal's direct-material variances of 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.)