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. Sal Amato operates a residential landscaping service, he has concentrated solely on the design and installation of upscale landscaping plans (e.g., trees, shrubs fountains,

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. Sal Amato operates a residential landscaping 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 fertlization. business in an affluent suburb of St. Louis. In an effort to provide quality The following data relate to his first year's experience with 56 fertilization clients: . Each client required six applications throughout the year and was billed $41.00 per application. Two applications involved Type I fertilizer, which contains a special ingredient for weed control. The remaining four . Sal purchased 5100 pounds of Type I fertilizer at $0.54 per pound and 10100 pounds of Type I fertilizer at $0.41 per A new, part-time employee was hired to spread the ferbilizer. Sal had to pay premium wages of $1160 per hour applications involved Type II fertblizer pound. Actual usage amounted to 3,210 pounds of Type I and 7,850 pounds of Type li 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: Fertilizer purchase price per pound: Type L, $0.5t, Type Il, $0.45 Fertilizer usage: 41 pounds per application Typical hourly wage rate of landscape personnel: $9.10 Labor time per application: 40 minutes 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) 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? S. Should the fertilizer service be continued next year? & Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3AReq 3 Req 4 Req s Compute the actual cost of the client applications. (Note: Exclude any fertilizer in inventory, as remaining fertilizer can be used next year.) (Do not round intermediate calculations. Round your answer to 2 decimal places.) Show less Req 2 Req 3B>

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