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 $2,324 to carpet the consulting firm’s newly leased office. The estimate was based on the following data: Estimated direct materials: 30 meters at $32 per meter $ 960 Estimated direct labor: 20 hours at $20 per hour 400 Estimated factory overhead (75% of direct labor cost) 300 Total estimated costs $1,660 Markup (40% of production costs) 664 Total estimate $2,324 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 15 meters at $32 $480 114 19 meters at $32 608 Time Ticket No. Description Amount H10 10 hours at $20 $200 H11 14 hours at $20 280 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 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 30 Meters at $32 $fill in the blank b61364005036ffd_1 20 Hours at $20 $fill in the blank b61364005036ffd_2 Direct Materials $fill in the blank b61364005036ffd_3 Direct Labor fill in the blank b61364005036ffd_4 Factory Overhead fill in the blank b61364005036ffd_5 Total $fill in the blank b61364005036ffd_6 Total $fill in the blank b61364005036ffd_7 Total cost $fill in the blank b61364005036ffd_8 ACTUAL Direct Materials Direct Labor Summary Mat. Req. No. Description Amount Time Ticket No. Description Amount Item Amount 112 15 Meters at $32 $fill in the blank b61364005036ffd_9 H10 10 Hours at $20 $fill in the blank b61364005036ffd_10 Direct Materials $fill in the blank b61364005036ffd_11 Direct Labor fill in the blank b61364005036ffd_12 114 19 Meters at $32 fill in the blank b61364005036ffd_13 H11 14 Hours at $20 fill in the blank b61364005036ffd_14 Factory Overhead fill in the blank b61364005036ffd_15 Total $fill in the blank b61364005036ffd_16 Total $fill in the blank b61364005036ffd_17 Total Cost $fill in the blank b61364005036ffd_18 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.) The direct materials cost exceeded the estimate by $128 because 4 meters 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. Management didn't provide enough direction to complete tasks on budget. The direct materials cost exceeded the estimate by $75 because 3 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. Select the correct answer from the above choices.

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 $2,324 to carpet the consulting firm’s newly leased office. The estimate was based on the following data: Estimated direct materials: 30 meters at $32 per meter $ 960 Estimated direct labor: 20 hours at $20 per hour 400 Estimated factory overhead (75% of direct labor cost) 300 Total estimated costs $1,660 Markup (40% of production costs) 664 Total estimate $2,324 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 15 meters at $32 $480 114 19 meters at $32 608 Time Ticket No. Description Amount H10 10 hours at $20 $200 H11 14 hours at $20 280 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 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 30 Meters at $32 $fill in the blank b61364005036ffd_1 20 Hours at $20 $fill in the blank b61364005036ffd_2 Direct Materials $fill in the blank b61364005036ffd_3 Direct Labor fill in the blank b61364005036ffd_4 Factory Overhead fill in the blank b61364005036ffd_5 Total $fill in the blank b61364005036ffd_6 Total $fill in the blank b61364005036ffd_7 Total cost $fill in the blank b61364005036ffd_8 ACTUAL Direct Materials Direct Labor Summary Mat. Req. No. Description Amount Time Ticket No. Description Amount Item Amount 112 15 Meters at $32 $fill in the blank b61364005036ffd_9 H10 10 Hours at $20 $fill in the blank b61364005036ffd_10 Direct Materials $fill in the blank b61364005036ffd_11 Direct Labor fill in the blank b61364005036ffd_12 114 19 Meters at $32 fill in the blank b61364005036ffd_13 H11 14 Hours at $20 fill in the blank b61364005036ffd_14 Factory Overhead fill in the blank b61364005036ffd_15 Total $fill in the blank b61364005036ffd_16 Total $fill in the blank b61364005036ffd_17 Total Cost $fill in the blank b61364005036ffd_18 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.) The direct materials cost exceeded the estimate by $128 because 4 meters 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. Management didn't provide enough direction to complete tasks on budget. The direct materials cost exceeded the estimate by $75 because 3 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. Select the correct answer from the above choices.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Job Cost Sheet

Estimated direct materials:
30 meters at $32 per meter	$ 960
Estimated direct labor:
20 hours at $20 per hour	400
Estimated factory overhead (75% of direct labor cost)	300
Total estimated costs	$1,660
Markup (40% of production costs)	664
Total estimate	$2,324

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	15 meters at $32	$480
114	19 meters at $32	608

Time Ticket No.	Description	Amount
H10	10 hours at $20	$200
H11	14 hours at $20	280

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

Customer	Jackson Consulting	Date	October 1
		Date wanted	October 10
		Date completed	October 10
		Job. No.
ESTIMATE

Direct Materials

Direct Labor

Summary

Amount

30 Meters at $32

$fill in the blank b61364005036ffd_1

20 Hours at $20

$fill in the blank b61364005036ffd_2

Direct Materials

$fill in the blank b61364005036ffd_3

Direct Labor

fill in the blank b61364005036ffd_4

Factory Overhead

fill in the blank b61364005036ffd_5

Total

$fill in the blank b61364005036ffd_6

Total

$fill in the blank b61364005036ffd_7

Total cost

$fill in the blank b61364005036ffd_8

ACTUAL

Direct Materials

Direct Labor

Summary

Mat. Req. No.

Description

Amount

Time Ticket No.

Description

Amount

Item

Amount

112

15 Meters at $32

$fill in the blank b61364005036ffd_9

H10

10 Hours at $20

$fill in the blank b61364005036ffd_10

Direct Materials

$fill in the blank b61364005036ffd_11

Direct Labor

fill in the blank b61364005036ffd_12

114

19 Meters at $32

fill in the blank b61364005036ffd_13

H11

14 Hours at $20

fill in the blank b61364005036ffd_14

Factory Overhead

fill in the blank b61364005036ffd_15

Total

$fill in the blank b61364005036ffd_16

Total

$fill in the blank b61364005036ffd_17

Total Cost

$fill in the blank b61364005036ffd_18

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.)

The direct materials cost exceeded the estimate by $128 because 4 meters 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.
Management didn't provide enough direction to complete tasks on budget.
The direct materials cost exceeded the estimate by $75 because 3 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.

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 $2,324 to
carpet the consulting firm's newly leased office. The estimate was based on the following data:
Estimated direct materials:
30 meters at $32 per meter
$ 960
Estimated direct labor:
20 hours at $20 per hour
400
Estimated factory overhead (75% of direct labor cost)
300
Total estimated costs
$1,660
Markup (40% of production costs)
664
Total estimate
$2,324
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
15 meters at $32
$480
114
19 meters at $32
608
Time Ticket No.
Description
Amount

Time Ticket No.
Description
Amount
H10
10 hours at $20
$200
H11
14 hours at $20
280
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
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
30 Meters at $32
20 Hours at $20
Direct Materials
Direct Labor
Factory Overhead

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