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 55 fertilization clients: .Each client required six applications throughout the year and was billed $40.00 per application. Two applications involved Type I fertilizer, which contains a special ingredient for weed control. The remaining four applications .Sal purchased 5,600 pounds of Type Ifertilizer at $0.59 per pound and 10,600 pounds of Type ll fertilizer at $0.46 per pound. .A new, part-time employee was hired to spread the fertilizer. Sal had to pay premium wages of $12.10 per hour because of a very .Based on previous knowledge of the operation, articles in trade journals, and conversations with other landscapers, Sal established involved Type I fertilizer Actual usage amounted to 3,800 pounds of Type I and 8,100 pounds of Type II. tight labor market; the employee logged a total of 177 hours at client residences. the following standards: Fertilizer purchase price per pound: Type I, $0.56: Type II, $0.48 Fertilizer usage: 46 pounds per application Typical hourly wage rate of landscape personnel: $9.60 Labor time per application: 40 minutes The operation did not go as smoothly as planned, with customer complaints actually much higher than expected. . Required: 1. Compute Sal's direct-material variances for 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.) 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 5. Should the fertilizer service be continued next year? 3-b. Calculate the profit or loss of Sal's new lawn fertilization service 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 55 fertilization clients: .Each client required six applications throughout the year and was billed $40.00 per application. Two applications involved Type I fertilizer, which contains a special ingredient for weed control. The remaining four applications .Sal purchased 5,600 pounds of Type Ifertilizer at $0.59 per pound and 10,600 pounds of Type ll fertilizer at $0.46 per pound. .A new, part-time employee was hired to spread the fertilizer. Sal had to pay premium wages of $12.10 per hour because of a very .Based on previous knowledge of the operation, articles in trade journals, and conversations with other landscapers, Sal established involved Type I fertilizer Actual usage amounted to 3,800 pounds of Type I and 8,100 pounds of Type II. tight labor market; the employee logged a total of 177 hours at client residences. the following standards: Fertilizer purchase price per pound: Type I, $0.56: Type II, $0.48 Fertilizer usage: 46 pounds per application Typical hourly wage rate of landscape personnel: $9.60 Labor time per application: 40 minutes The operation did not go as smoothly as planned, with customer complaints actually much higher than expected. . Required: 1. Compute Sal's direct-material variances for 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.) 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 5. Should the fertilizer service be continued next year? 3-b. Calculate the profit or loss of Sal's new lawn fertilization service