www. Wor Mule TE Com Soyle 11 ot 61 TE 1 wa To Way Queen Marele Overt 4 Fy + ICE 11 0 . PEL w My Dre! 2 2 IN w Order Cast She mant Cart Company and installs commercial competing for officer Care Cum se job order costs. When prospective customer asks for a price on the data Inverted on a numbered job cast the Ir the offers scored, med tre the incurred are recorded in the usual manner on the job cost sheet Anthem for the between the imated and actual costs are noted on the chest. The data are then able to management ating the miciency of operations and in preparing quotes on future john on October 1. eman et Company gove Jackson Consulting an estimate of $2,464 to carpet the consulting firm's newly. The estimate was based on the following data Estimated direct materials: 40 sq. ft. at $30 per sq. $1,200 Estimated direct labor 16 hours at $20 per hour 320 Estimated factory overhead (75% of direct labor cost) 240 Total estimated costs $1,760 Markup (40% of production costs) 204 Total estimate $2,464 On October 3, Jackson Consulting signed a purchase contract, and the delivery and installation was completed on October 10 The related materials requisitions and ume tickets are summarized as follows: Materials Requisition No. Description Amount 112 20 sq. ft. at $30 $600 114 24 sq. ft. at $30 720 Time Ticket No. Description Amount H10 8 hours at $20 $160 MII 12 hours at $20 Required: 240 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 Amount Summary Amount Amount at $30 Total $ 16 Hours at $20 $ Direct Materials $ Direct Labor Total Factory Overhead $ 5 Total cost S ACTUAL Direct Materials Summary Mat. Reg. No. Description Direct Labor Amount Time Ticket No. Description Amount Item Amount 310 $ 20 sq. ft. at $30 Direct Materials 10 8 Hours at $20 $ Direct Labor 312 24 sq. ft. at $30 HI! 12 Hours at $20 Factory Overhead Total $ Total Total Cost 5 $ What is the best explanation for the variances between actual costs and estimated costs? (For this purpose, assume that the additional square feet of material used in the job were spoiled, the factory overhead rate has been proved to be satisfactory, and an inexperienced employee performed the work) a. The direct materials cost exceeded the estimate by $120 because 4 square feet of materials were spoiled. The direct labor cost exceeded the estimate by $80 because an additional 4 hours of labor were used by an inexperienced employee. The factory overhead cost exceeded the estimate because an additional $60 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 $90 because 3 square feet of materials were spoiled. d. The direct labor cost exceeded the estimate by $240 because an additional 4 hours of labor were used by an inexperienced employee. Select the correct answer from the above choices. 2mote Check My Works remang www. Wor Mule TE Com Soyle 11 ot 61 TE 1 wa To Way Queen Marele Overt 4 Fy + ICE 11 0 . PEL w My Dre! 2 2 IN w Order Cast She mant Cart Company and installs commercial competing for officer Care Cum se job order costs. When prospective customer asks for a price on the data Inverted on a numbered job cast the Ir the offers scored, med tre the incurred are recorded in the usual manner on the job cost sheet Anthem for the between the imated and actual costs are noted on the chest. The data are then able to management ating the miciency of operations and in preparing quotes on future john on October 1. eman et Company gove Jackson Consulting an estimate of $2,464 to carpet the consulting firm's newly. The estimate was based on the following data Estimated direct materials: 40 sq. ft. at $30 per sq. $1,200 Estimated direct labor 16 hours at $20 per hour 320 Estimated factory overhead (75% of direct labor cost) 240 Total estimated costs $1,760 Markup (40% of production costs) 204 Total estimate $2,464 On October 3, Jackson Consulting signed a purchase contract, and the delivery and installation was completed on October 10 The related materials requisitions and ume tickets are summarized as follows: Materials Requisition No. Description Amount 112 20 sq. ft. at $30 $600 114 24 sq. ft. at $30 720 Time Ticket No. Description Amount H10 8 hours at $20 $160 MII 12 hours at $20 Required: 240 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 Amount Summary Amount Amount at $30 Total $ 16 Hours at $20 $ Direct Materials $ Direct Labor Total Factory Overhead $ 5 Total cost S ACTUAL Direct Materials Summary Mat. Reg. No. Description Direct Labor Amount Time Ticket No. Description Amount Item Amount 310 $ 20 sq. ft. at $30 Direct Materials 10 8 Hours at $20 $ Direct Labor 312 24 sq. ft. at $30 HI! 12 Hours at $20 Factory Overhead Total $ Total Total Cost 5 $ What is the best explanation for the variances between actual costs and estimated costs? (For this purpose, assume that the additional square feet of material used in the job were spoiled, the factory overhead rate has been proved to be satisfactory, and an inexperienced employee performed the work) a. The direct materials cost exceeded the estimate by $120 because 4 square feet of materials were spoiled. The direct labor cost exceeded the estimate by $80 because an additional 4 hours of labor were used by an inexperienced employee. The factory overhead cost exceeded the estimate because an additional $60 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 $90 because 3 square feet of materials were spoiled. d. The direct labor cost exceeded the estimate by $240 because an additional 4 hours of labor were used by an inexperienced employee. Select the correct answer from the above choices. 2mote Check My Works remang