Job Coat Shoot Remnant Carpet Company sells and installs comercial competing for office buildings, Remnant Carpet Company uses a job order cost wstom. When a prospective customer asks for a price quote on a job, the estimated cost data are inserted on an unnumbered job cost shot. If the offer is accepted a number is assigned to the Sob, and the costs incurred are recorded in the 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 avuitable to uragement in evaluating the efficiency of operations and in preparing quotes on future jobs. on October 1, Remnant Carpet Company ove Jackson Consulting an estimate of $2.660 to carpet the comuni firm's newly leaned office. The estimate was based on the following data: Estimated direct materials: 40 meters at 330 per meter $ 1,200 Estimated direct labor 20 hours a $20 per hour 400 Estimated tactory overhead (254 of direct labor cost) 300 Total estimated cont 11.000 Markup (40% of production costs) 760 Total estimate $2.000 On October Jackson Consulting soned purchase contact, and the delivery and installation were completed on October 10, The related and as follow Materials Requisition No. Description Amount 20 meter 5600 24 meters 20 Time Ticket No. Description Amount HIO 10 hours at 20 200 Materials Requisition No. Amount 112 Description 20 meters at $30 24 mieten at $30 3600 720 Time Ticket No. Description 10 hours at $20 Amount $200 H10 H11 14 hours at 520 280 Required: Enter amounts as positive numbers 1. Complete that portion of the job order cost sheet that would be prepared when the estimates oven to the customer 2. Record the costs incurred, and complete the job onder cost sheet JON ORDER COST SHEET Customer Jackson Consulting Date Date wanted October October 10 Date completed October 30 Mob. No ESTIMATE Suninary Direct Materials Direct Labor Amount Amount Amount 40 Meters at 130 20 Hour 20 Dari Materials Direct Labor Book Printem Direct Labor Factory Overhead Total Total Total cost ACTUAL Direct Materials Description Direct Labor Mal Reg. No. Amount Time Ticket No. Description Amount Amount 112 20 Meters at $30 HO 10 Hours at $20 Summary Tem Direct Materials Direct Labur Factory Overhead 114 24 Meters at $30 H11 14 Hours at 520 Total Total Total Coot What is the best explanation for the variances between actual costs and estimated costs for this purpose, sume that the additional meters at tale in the world, the factory overhead rate has proven to be satisfactory, and an experienced employee performed the work The direct materials cost exceeded the estimate by $120 CRDR meters of materials were polied. The direct labor cost ceeded the estimate by to become an additional hours labor were used by an inexperienced employee. The factory overhead cost exceeded the estimate because an additional 360 of factory overhead was located because of the sain direct labor b. Management didn't provide enough direction to complete takes on budget c. The direct materials cost exceeded the estimate by $5 because meters of materials were soled. d. The direct labor cost exceeded the estimate by 5120 because an additional 4 hours of labor were used by an inexperienced emplover Select the correct answer from the above choices