Question

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 $3,159 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: 840 630 28 hours at $30 per hour Estimated factory overhead (75% of direct labor cost) Total estimated costs Markup (30% of production costs) $2,430 729 Total estimate $3.159 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. Amount Description 15 meters at $32 112 5 480

Answer 1

Since all the estimated materials and labour cost are correct

I will just explain it.

Estimated material, labour and factory overhead cost is already given in the question. We just need to use those numbers to complete the estimated part of the job cost sheet.

For actual job cost sheet, the details of materials and labour cost are provided in the question, we just need to multiply units/hours by per unit/hour rate to arrive at material and labour cost. For factory overhead, we need to apply the overhead rate of 75% of labour cost.

All this is done correctly in the above screenshot of the answer.

Summary part of the job cost sheets are as below:

Summary part of Estimated job cost sheet Amount Direct materials 960 840) Direct labor Factory overhead (75% of labour cost) Total cost 630 2430 Summary part of Actual job cost sheet Amount Direct materials 1088 960 Direct labor Factory overhead (75% of labour cost) Total cost 720 2768