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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 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 $55$ customers during the past year:

$-$ For each client, $6$ fertilizer treatments are required per year, for which Archi Jardin charges $40$

EUR per treatment.

$-$ Archi Jardin has purchased $1,000$ kg of fertilizer at $5\mathrm{.}10$ EUR per kg and $600$ kg via an urgent

last minute order at $6\mathrm{.}00$ EUR per kg$.$ Actual consumption was $1,600$ 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 $20$ EUR and he has worked a

total of $190$ 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: $5\mathrm{.}00$ EUR per kg

o Use of fertilizer: $5$kg per treatment

o DLC : $10$ EUR per DLH

o Amount of DLH: $40$ minutes per treatment

Required:

$1.$ Prepare a full variance analysis for the direct material and direct labour costs. Round any

intermediate results to $2$ decimal places. What could be possible explanations for the

variances you find?

$2.$ Calculate the profit of the fertilizing activity.

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