Job Cont Sheet Remnant Carpet Company sells and retail commercial carpeting for office buildings Rent Carpet Company uses a job order cost system. When a prospective customer ses for a price quote on a yote estimated costa are inserted on an incumbered job cost sheet. If the offer is accepted a number is assigned to the job, and the couts incurred are recorded in the usual manner on the job cott weet Aner the job is completed, reasons for the variances between the estimates and scut costs are noted on the sheet. The data are then able to management in evaluating the efficiency of operations and in preparing quotes in future oht on October 1, Remnant Carpet Company gove Jackson Consulting an estimate $2,912 to carpet the consulting firm's newly ease office. The estimate was based on the Following: Estimated direct material: 40 meters at $35 per meter $ 1.400 Estimated direct labor 24 hours at 120 per hout 40 Estimated factory overhead (75% of direct labor cost) 360 Total estimated costs 32,240 Markup (30% of production costs) 672 Total estimate $2,017 On October 3, Jackson Consulting signed a purchase contract, and the delivery and installation were completed on October 10 The related material recons and time data are summardas follows: Materials Requisition No. Description Amount 112 20 meters at 635 5700 114 24 meters at $35 340 Time Ticket No. Description Amount HIO 12 hours at $20 $240 H11 16 hours at $20 320 Required Enter amounts as positive numbers. 1. Complete that portion of the job order com sheet that would be prepared when the estimate is given to the customer 2. Record the costs incurred, and complete the job order cost sheet JOB ORDER COST SHEET Customer Jackson Consulting Date October i JOB ORDER COST SHEET Customer Jackson Consulting Date Date wanted Date completed Job. No. ESTIMATE October 1 October 10 October 10 Direct Materials Direct Labor Summary Amount Amount Amount 40 Meters at 35 24 Hours at $20 Direct Material Director Factory Overhead Total Total Total cost Direct Materials Description ACTUAL Direct Labor Time Ticket Ne Description Summary Mat Reg. No Amount Amount Item Amount 112 20 Meters at $35 HIO Direct Materials 12 hours at 120 Direct Labor 1114 24 Meters at 5:35 H11 16 Hours at $20 Total Factory Overhead Total Cost What is the best explanation for the variances between actual costs and estimated costs. For this purpose, we that the additional meters of material used in the job were poled, the factory overhead rate has proven to be satisfactory, and an inexperienced employee performed the work) The direct materials cost exceeded the estimate by $140 because 4 meters of materials were spoiled. The direct labor cost exceeded the estimate by 580 because an additional 4 hours of labor were used by an experienced employee. The factory overhead cost exceeded the estimate because an additional $60 of factory overhead was allocated because of the increase in direct labor Management didn't provide enough direction to complete tasks on budget The direct materials cost exceeded the estimately $25 because 3 meters of materials were spoiled d. The direct labor cost exceeded the estimate by $120 because an additional 4 hours of labor were used by an inexperienced employee Select the correct answer from the above choices