Estimated direct materials:400 sq. ft. at $32 per sq. ft.$12,800Estimated direct labor:30 hours at $20 per hour.....Estimated factory overhead (80% of direct labor cost)...600480Total estimated costs ...$13,880Markup (30% of production costs).4,164Total estimate....$18,044 On May 10, Lunden Consulting signed a purchase contract, and the carpet was deliv-ered and installed on May 15.The related materials requisitions and time tickets are summarized as follows:Materials Requisition No.DescriptionAmount360 sq. ft. at $3250 sq. ft. at $32$11,5201321341,600Time Ticket No.DescriptionAmount18 hours at $19$342Н918 hours at $19Н12342

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Asked Jan 20, 2020
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Stretch and Trim Carpet Company sells and installs commercial carpeting for office buildings. Stretch and Trim 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 for management to use in evaluating the efficiency of operations and in preparing quotes on future jobs. On May 9, Stretch and Trim gave Lunden Consulting an estimate of $18,044 to carpet the consulting firm’s newly leased office. The estimate was based on the following data:

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Instructions
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 applied 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 square feet of material used in the job were spoiled, the factory overhead rate has proven to be satisfactory, and an inexperienced employee performed the work.

Estimated direct materials:
400 sq. ft. at $32 per sq. ft.
$12,800
Estimated direct labor:
30 hours at $20 per hour.....
Estimated factory overhead (80% of direct labor cost)...
600
480
Total estimated costs ...
$13,880
Markup (30% of production costs).
4,164
Total estimate....
$18,044
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Estimated direct materials: 400 sq. ft. at $32 per sq. ft. $12,800 Estimated direct labor: 30 hours at $20 per hour..... Estimated factory overhead (80% of direct labor cost)... 600 480 Total estimated costs ... $13,880 Markup (30% of production costs). 4,164 Total estimate.... $18,044

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On May 10, Lunden Consulting signed a purchase contract, and the carpet was deliv-
ered and installed on May 15.
The related materials requisitions and time tickets are summarized as follows:
Materials Requisition No.
Description
Amount
360 sq. ft. at $32
50 sq. ft. at $32
$11,520
132
134
1,600
Time Ticket No.
Description
Amount
18 hours at $19
$342
Н9
18 hours at $19
Н12
342
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On May 10, Lunden Consulting signed a purchase contract, and the carpet was deliv- ered and installed on May 15. The related materials requisitions and time tickets are summarized as follows: Materials Requisition No. Description Amount 360 sq. ft. at $32 50 sq. ft. at $32 $11,520 132 134 1,600 Time Ticket No. Description Amount 18 hours at $19 $342 Н9 18 hours at $19 Н12 342

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Step 1

1. Prepare job order cost sheet for an estimate given to the customer as shown below:

Accounting homework question answer, step 1, image 1
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Step 2

2. Prepare job order cost sheet foractual cost ...

Accounting homework question answer, step 2, image 1
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