Stretch and Trim Carpet Company sells and installs commercial carpeting for office buildings. Stretch and Trim carpet Company uses a cob order cost system. When a propective 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 mannor on the job cost sheet. After the jobis completed, reasons for the variances between estimated and actual costs are noted on the sheet. The data are then avaible to managementin evaluating the efficiency of operations and in preparing quotes on future jobs. On May 9, Stretch and Trim gave Lunden Consulting an estimate of 18044 to carpet the consulting firms newly leased office. The estimate was based on the following data:

Estimated direct materials:

400 meters at 32 per meter..............................12800

Estimated direct labor:

30 hours at 20 per hour...................................600

Estimated factory overhead (80% of direct labor costs).........480

Total estimated costs....................................13880

markup (30% of production costs)..............4164

Total estimate..........................................$18044

On May 10, Lunden consulting signed a purchase contract, and the carpet was delivered and installed on May 15.

The related materials requisitions and time tickets are summarized as follows:

Materials requisition No.	Description	Amount
132	360 meters at $32	11520
134	50 meters at $32	1600
Time Ticket No.	Description	Amount
H9	18 hours at $19	342
H12	18 hours at $19	342

1. Complete that portion of the job order cost sheet that would be prepared when the estimate is given to the customer. ( round factory overhead to the nearest dollar.)

2. Record the costs incurred, and prepare a job order cost sheet. Comment on the reasons for the variances between actual costs and estimated costs. For this purpose, assume that the additional meters of materials used in the job were spoiled, the factory overhead rate has proven to be satisfactory, and inexperienced employee performed the work.