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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
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 customers during the past year:
For each client, fertilizer treatments are required per year, for which Archi Jardin charges
EUR per treatment.
Archi Jardin has purchased kg of fertilizer at EUR per kg and kg via an urgent
last minute order at EUR per kg Actual consumption was 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 EUR and he has worked a
total of 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:
o Purchase price fertilizer: EUR per kg
o Use of fertilizer: kg per treatment
o DLC : EUR per DLH
o Amount of DLH: minutes per treatment
Required:
Prepare a full variance analysis for the direct material and direct labour costs. Round any
intermediate results to decimal places. What could be possible explanations for the
variances you find?
Calculate the profit of the fertilizing activity.
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