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 \$2,562 to carpet the consulting firm's newly leased office. The estimate was based on the following data: On October 3 , Jackson Consulting signed a purchase contract, and the delivery and installation was completed on October 10. The related materials requisitions and time tickets are summarized as follows: The related materials requisitions and time tickets are summarized as follows: 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. BTIMATE: \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline \multicolumn{3}{|c|}{ Direct Materiaks } & \multicolumn{3}{|c|}{ Direct Labor } & \multicolumn{2}{|c|}{ Summary } \\ \hline & . & Amount & & & Ameant & & Amount \\ \hline \multicolumn{2}{|l|}{30 sq. A. at 133} & \& & \multicolumn{2}{|l|}{16 Hours at 390} & 5 & Direct Materials & 3. \\ \hline \multicolumn{2}{|l|}{8} & & & & & Oirect Labor & \\ \hline & & & & & ractory overhead & \\ \hline \multicolumn{2}{|l|}{ Total } & & \multicolumn{2}{|l|}{ rotal } & tf & Tecai cont & s? \\ \hline \multicolumn{8}{|c|}{ UA } \\ \hline \multicolumn{3}{|c|}{ Direct Materials } & \multicolumn{3}{|c|}{ Oarect Labor } & \multicolumn{2}{|c|}{ Summary } \\ \hline Mat Req No. & Descrietion & Amount & Time Ticket tho. & Description & Ameunt & Item & Amevnt \\ \hline ain & & I & 340 & & & Direct Haterials & 32 \\ \hline & & & & & & Derect laber & \\ \hline 312 & 190,ft,x33 & & mit & 12 mours at 130 & & ractory ovechent & \\ \hline rual & & 1 & Tout & & if & fotal cout & \\ \hline \end{tabular} What is the best vxplanation for the varances between actual cants and evimated costs? (For this purpose, assume that the additional sauare feet of material used in the job were spoiled, the factory swertiead rate has been pleved to be satisfactory, and an inexperienced emplovee performed the work.) Lboer. b. Hanagement dast provide enevgh direction to coenplete tasks on bodoet d. The direat labor cest excieded the estimate br $360 becouse as adabonal t hours of labior ware used by an inexperienced empleve. select the cortect ansuer fran the above cobices
