(Cost control) Baltimore Fabricated Steel Products Company produces a variety Communication of steel drums that are used as storage containers for various chemical products.

One of the products the firm produces is a 5 5-gallon drum. In the past year, the company produced this drum on four separate occasions for four different cus¬ tomers. Some financial details of each of the four orders follows.

Baltimore Fabricated Steel Products Company uses a job order costing system and obtains jobs based on competitive bidding. For each project, a budget is developed. As the controller of the company, write a memo to company man¬ agement describing any problems that you perceive in the data presented and steps to be taken to eliminate the recurrence of these problems.LO1

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DATE JOB NO. QUANTITY BID PRICE BUDGETED COST ACTUAL COST Jan. 17 2118 Mar. 13 2789 30,000 $150,000 $120,000 $145,000 25,000 125,000 100,000 122,000 Oct. 20 4300 40,000 200,000 160,000 193,000 Dec. 3 4990 35,000 175,000 140,000 174,000