Having problems with this question, this is all the information I was given:
PR 17-3B Job order cost sheet If the working papers correlating with the textbook are not used, omit Problem 17-3B. Tylee Furniture Company refinishes and reupholsters furniture. Tylee uses a job order cost system. When a prospective customer asks for a price quote on a job, the estimated cost data are inserted on an unnumbered job cost sheet. If the offer is accepted, a number is assigned to the job, and the costs incurred are recorded in the usual manner on the job cost sheet. After the job is completed, reasons for the variances between the estimated and actual costs are noted on the sheet. The data are then available to management in evaluating the efficiency of operations and in preparing quotes on future jobs. On April 15, 2012, an estimate of $684.00 for reupholstering a sofa and a loveseat was given to Jeff Tomeszak. The estimate was based on the following data: Estimated direct materials: 18 meters at $18 per meter . . . $ 324.00 Estimated direct labor: 12 hours at $20 per hour. . . .. . . . 240.00 Estimated factory overhead (50% of direct labor cost). 120.00 Total estimated costs . .... 684.00 Markup (50% of production costs) 342.00 Total estimate . ... $1,026.00 On April 19, the sofa and loveseat were picked up from the residence of Jeff Tomeszak, 202 Bimmer Road, Mooresville, NC, with a commitment to return them on May 22. The job was completed on May 20. The related materials requisitions and time tickets are summarized as follows: Materials Requisition No. Description Amount 602 9 meters at $18 $162 606 11 meters at $18 198 Time Ticket No. Description Amount H9 8 hours at $19 $152 H12 8 hours at $19 152Instructions 1. 2. Complete that portion of the job order cost sheet that would be prepared when the estimate is giVen to the customer. - Assign number 12-305 to the job, record the costs incurred, and complete the job order cost sheet. Comment on the reasons for the variances between actual costs and estimated costs. For this purpose, assume that two meters of materials were spoiled, the factory overhead rate has been proved to be satisfactory. and an inexpe- rienced employee performed the work. JOB ORDER COST SHEET Customer Jeff Tomeszak Date April 15, 2012 Address 202 Bimmer Road Date Wanted May 22, 2012 Mooresville, NC Date Completed May 20, 2012 Item Reupholster sofa and loveseat Job No. 12-305 ESTIMATE Direct Materials Direct Labor Summary Amount Amount Amount meters at hours at Direct materials Direct labor Factory overhead Total Total Total ACTUAL Direct Materials Direct Labor Summary Mat. Req. No. Description Amount Ticket No. Description Amount Item Amount 210 meters H16 hours Direct materials at at Direct labor 212 meters H21 hours Factory overhead at at Total Total Total
