Job Cost Sheet Remnant Carpet Company sells and installs 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 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 October 1, Remnant Carpet Company gave Jackson Consulting an estimate of $2,912 to carpet the consulting firm's newly leased office. The estimate was based on the following data: Estimated direct materials: 40 meters at $35 per meter $ 1,400 Estimated direct labor: 16 hours at $30 per hour 480 360 Estimated factory overhead (75% of direct labor cost) Total estimated costs $2,240 Markup (30% of production costs) 672 Total estimate $2,912 On October 3, Jackson Consulting signed a purchase contract, and the delivery and installation were completed on October 10. The related materials requisitions and time tickets are summarized as follows: Materials Requisition No. Description Amount 112 20 meters at $35 $700 114 840 24 meters at $35 Description Time Ticket No. Amount H10 8 hours at $30 $240 H11 12 hours at $30 360 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 job order cost sheet. JOB ORDER COST SHEET utomor Jackson Consulting Data 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 job order cost sheet. JOB ORDER COST SHEET Customer Jackson Consulting Date October 1 Date wanted October 10 Date completed October 10 Job. No. ESTIMATE Direct Materials Direct Labor Summary Amount Amount Amount 40 Meters at $35 $ 16 Hours at $30 $ Direct Materials $ Direct Labor Factory Overhead Total Total Total cost $ ACTUAL Direct Materials Direct Labor Summary Mat. Reg. No. Description Amount Time Ticket No. Description Amount Item Amount Direct Materials 112 20 Meters at $35 $ H10 8 Hours at $30 $ Direct Labor 114 24 Meters at $35 H11 12 Hours at $30 Factory Overhead Total $ Total $ Total Cost $ 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 spoiled, the factory overhead rate has proven to be satisfactory, and an inexperienced employee performed the work.) I! Total Total Total Cost 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 spoiled, the factory overhead rate has proven to be satisfactory, and an inexperienced employee performed the work.) a. The direct materials cost exceeded the estimate by $140 because 4 meters of materials were spoiled. The direct labor cost exceeded the estimate by $120 because an additional 4 hours of labor were used by an inexperienced employee. The factory overhead cost exceeded the estimate because an additional $90 of factory overhead was allocated because of the increase in direct labor. b. 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 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. Job Cost Sheet Remnant Carpet Company sells and installs 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 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 October 1, Remnant Carpet Company gave Jackson Consulting an estimate of $2,912 to carpet the consulting firm's newly leased office. The estimate was based on the following data: Estimated direct materials: 40 meters at $35 per meter $ 1,400 Estimated direct labor: 16 hours at $30 per hour 480 360 Estimated factory overhead (75% of direct labor cost) Total estimated costs $2,240 Markup (30% of production costs) 672 Total estimate $2,912 On October 3, Jackson Consulting signed a purchase contract, and the delivery and installation were completed on October 10. The related materials requisitions and time tickets are summarized as follows: Materials Requisition No. Description Amount 112 20 meters at $35 $700 114 840 24 meters at $35 Description Time Ticket No. Amount H10 8 hours at $30 $240 H11 12 hours at $30 360 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 job order cost sheet. JOB ORDER COST SHEET utomor Jackson Consulting Data 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 job order cost sheet. JOB ORDER COST SHEET Customer Jackson Consulting Date October 1 Date wanted October 10 Date completed October 10 Job. No. ESTIMATE Direct Materials Direct Labor Summary Amount Amount Amount 40 Meters at $35 $ 16 Hours at $30 $ Direct Materials $ Direct Labor Factory Overhead Total Total Total cost $ ACTUAL Direct Materials Direct Labor Summary Mat. Reg. No. Description Amount Time Ticket No. Description Amount Item Amount Direct Materials 112 20 Meters at $35 $ H10 8 Hours at $30 $ Direct Labor 114 24 Meters at $35 H11 12 Hours at $30 Factory Overhead Total $ Total $ Total Cost $ 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 spoiled, the factory overhead rate has proven to be satisfactory, and an inexperienced employee performed the work.) I! Total Total Total Cost 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 spoiled, the factory overhead rate has proven to be satisfactory, and an inexperienced employee performed the work.) a. The direct materials cost exceeded the estimate by $140 because 4 meters of materials were spoiled. The direct labor cost exceeded the estimate by $120 because an additional 4 hours of labor were used by an inexperienced employee. The factory overhead cost exceeded the estimate because an additional $90 of factory overhead was allocated because of the increase in direct labor. b. 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 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