Tylee Furniture Company refinishes and reupholsters furniture. Tylee 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 April 15, 2012, an estimate of $684.00 for reupholstering a sofa and a loveseat was given to Jeff Tomcszak. The estimate was based on the following data:

On April 19, the sofa and loveseat were picked up from the residence of Jeff Tomcszak, 202 Bimmer Road, Mooresville, NC, with a commitment to return them on May 22. The job was completed on May 20. The related materials requisitions and time tickets are summarized as follows:

1. Complete that portion of the job order cost sheet that would be prepared when the estimate is given to the customer.
2.  Assign number 12-305 to the job, record the costs incurred, and complete the job order cost sheet. Comment on the reasons for the variances between actual costs and estimated costs. For this purpose, assume that two meters of materials were spoiled, the factory overhead rate has been proved to be satisfactory, and an inexperienced employee performed the work.

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Estimated direct materials: 18 meters at $18 per meter Estimated direct labor: 12 hours at $20 per hour.... Estimated factory overhead (50% of direct labor cost). Total estimated costs ..... Markup (50% of production costs). Total estimate.... $ 324.00 240.00 120.00 $ 684.00 342.00 $1,026.00 Materials Requisition No. Description Amount 9 meters at $18 11 meters at $18 $162 198 602 606 606 Time Ticket No. Н9 Description 8 hours at $19 8 hours at $19 Amount $152 152 H12