Job Cost Sheet Remnant Carpet Company sells and instalis commercial carpeting for office buildings Remnant Carpet Company 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 coat shnet. If the offer is accepted, a number 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 the available to management in evaluating the officiency of operations and in preparing quotes on future jobs. On October 1, Remnant Carpet Company gave Jackson Consulting an estimate of $2,847 to carpet the consulting firm's newly leased office. The estimate was based on the following dat Estimated direct materials: 30 meters at $31 per meter $930 Estimated direct labor 24 hours at $30 per hour Eimated factory overhed (75 of direct labor cost) Total estimated costs $2,190 Markup (309 of production costs) 557 Total estimate 2,042 720 On October 3, Jackson Consulting and purchase contract, and the delivery and installation were completed on October 10 Terusted som andre med as follow Materials Requisition No. Description Amount 112 15 meters at 53 5465 19 meters at $3: 559 Description Amount Time Ticket No. H10 5360 12 hours at $30 16 hours at 530 H11 450 Required: Enter amounts as positive numbers 1. Complete that portion of the job order cost sheet that would be prepared when the estimate is given to the customer 2. Record the costs incurred, and complete the border cost sheet JOB ORDER COST SHEET Date Customer Jackson Consulting October Date wanted Date.comletad Job. No October 10 October 10 ESTIMATE Direct Materials Direct Labor Summary Amount Amount Amount 30 Meters at 31 24 Hours at 5:30 Direct Materiais Direct Labor Factory Overhead Total Total cost ACTUAL Direct Materials Direct Labor Summary Mat, Reg. No. Description Amount Time Ticket No, Description Amount Item Amount Direct Material 35 Meters at 31 HIO 22 Hours at 5:30 Direct Labor 114 19 Meters at 3: 16 Hours at $30 Factory Overhent Total Total Total Cost What is the best planation for the variances between actual costs and estimated couts For this purpose, assume that the additional meters of material used in the 100 were soled the factory overhead rate has proven to be satisfactory and an inexperienced employee performed the work The direct materials cost exceeded the estimate by $124 because mater or materials were spoiled. The direct labor cost exceeded the estimate by $120 because an additional hours of labor were used by an inexperienced employee the factory overhead cost exceeded the estimate because an additional E90 of factory overnand What is the best explanation for the variances between actual costs and estimated costs. For this purpose, assume that the additional meters of material used in the job were spotted, the factory overhead rate has proven to be satisfactory, and an inexperienced employee performed the work.) a. The direct materials cost axceeded the estimate by S124 because 4 meters of materials were spoiled. The direct labor cost exceeded the estimate by $120 because on additional 4 hours of labor were used by an inexperienced employee. The factory overhead cost exceeded the estimate because an additional 590 of factory overhead was allocated because of the increase in direct labor 5. Management didn't provide enough direction to complete tasks on budget c. The direct materials cost exceeded the estimate by $75 because 3 meters of materiais were spoiled d. The direct labor cost exceeded the estimate by $120 because an additional 4 hours of labor were used by an inexperienced amployee Select the correct answer from the above choices