cb order Coat Shect Carli Furniture Company refirishes and r

cb order Coat Shect Carli Furniture Company refirishes and reupholsters turniture. Carl um ture uses a ob der cost system when a prospective customer asks for a price quote on a ob the estimated cost data a e inserted on an unnumbered ob cost sheet r the otter is accepted a number is assigned operations and in preparing quotes on u ure jobs Un Jul 5, 2016 aresurmate o223 ur reupholstering sofa and lo eseat was given to Justin Flannigan lhe estimate was based on e Ullowing data: Estirnatad direct matarials: 40 meters al $31 per meter Estimated direct labor: 28 hours at $30 per hour Estimated factory overhead (75% of direct labor cost Total estimated costs Manan(30% nf production ensts) Total astimat Un July 10, the sofa and loveseat were picked up from the residence of Justin Flannigan, 310 Suzuki Drive, Lubbock, TX, with a commitment to return it on September 7. The job was completed on September 3 The related materlals requisitions and time tickets are summarized as tollows: MaterialsReqisition No. 310 312 Time Ticket No. 1,240 $2,710 $3,523 Amount 20 744 20 meters at 31 24 meters at $31 4 hours at $30 $420 I8 hours at $30 Required: Enter amounts as positive numbers 1. Complete that portion of the job order cost shcct that would be prepared when th cstimate is qiven to the customer.

Solution

JOB ORDER COST SHEET. Customer Justin Flannigan Date 6-Jul-16 Addresss 310, Sizuki Drive, Date Wanted 7-Sep-16 Lubbock, TX Date Completed 3-Sep-16 Item Reupholster Sofa and Loveseat Job No ESTIMATE Direct Materials Direct Labor Summary 40 Meters at $31          1,240.00 28 Hours at $30           840.00 Item Amount Direct Material    1,240.00 Direct Labor       840.00 Factory Overhead       630.00 Total          1,240.00 Total           840.00 Total Cost    2,710.00 ACTUAL Direct Materials Direct Labor Summary Mat. Req. No. Description Amount Time Ticket No. Description Amount Item Amount 310 20 meters at$31             620.00 H50 14 hrs at $30           420.00 Direct Material    1,364.00 Direct Labor       960.00 312 24 meters at $31             744.00 H55 18 hrs at $30           540.00 Factory Overhead       720.00 Total          1,364.00 Total           960.00 Total Cost    3,044.00 Answer 2. The best explanation for the variance between actual costs and estimated costs: b. management didn\'t provide enough direction to complete tasks on budget. If the management give proper directions that work is to be done bt experienced labor may be the materials will not be spoiled and additional direct labor hours will not be used.