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 $2,756 to carpet the consulting firms newly leased office. The estimate was based on the following data:

Remnant Carpet Company sells and instolls commerdial carpeting tor omice bulldings. Remnant Carpet Comaony usee a fob order cost system. When a prospective cuctomer asks tor a price cuobe on a job, the ectimated coct data are Incerted on an unnumbered job cost sheet. It the ofter is accepted, a number is assigned to the job, and the costs inourned erecornes in ee us manher oh the ob cot seet after the fob is competed, ressonsor the varlances between the estimabed and schil eeets are noted an the sheet. The dats are then svailsble to mansoement in evalusting the efticeney at operations and in preparing quotes on future tobe, On Oetaber 1, Remeant Carnet Comnany anve 1arkeom stimated ddret materias p 4 ,u Etmated diret lapor 16 haurs at $30 per hus 116 Marko 30% of prad.ction costy) 63 ta estmate l the teivy HIl widlelian owumu Jak Cuauting sigelpudias rd ou Cduiw 10 Iy malatigle cisauNd t tishs aricel aolluo Haleri Puuisitionn No. Driptinn Amun - ... 24 msary t16 Description Time Ticket No Amount H10 hour t30 10 H11 17 heurs st 43n 350 Required: Ri Entor amourts as postve numbers would pe preparod when 1. Complete that portion or the tob arder cost thect th be octimato ie dven to thc cutomer. 2. Repord the cota incurred, and complete the job order cot shect 10n ORDFR CO SHTFT arsn Consting Custamer October October 10 Date warten October 0 pate camplctod Iob No SUAI Din Halrials Dircl Labor Summiry Atiount t Amount 40 mrs at $ 16 Hours at 30 piract Materiak riret Labre Total Teesl ACTUAL nirect I abon Dinert Haterials Summary Mat Rea No ocedetion Descriutionu Lime Amount Amoun tem Amount ritel Maleich 0 Mebers ot 32 HIC a Hours at $30 L12 i Lal T ctory ed 4 Mele x at 114 Total Cost Tota Total additional motcrs of material used in the job were spolled, the factory overhcad rate has proven to be satistactory, and an incperiencod cmplovec pertomed the work. what is the best cxplanaton for the varlances between actual costs and cstimated cast. (For this purpocc. scume thot The direct materials coet exreded the estimate by $128 herause 4 meters ot materials were snolled. The drert lahor cot exceeded the astimate by $120 hecaure an andtioral 4 hours at lahor were used by an inesnerienced emaiove, The tartooy muertead cost exceeded the estimate hecause an andtional 490 ot tactory overhead liecatad Mansnemert didnt pravide enaush direction to romplete taeks on hudnet. Cala the crerect answer trom e above choires