(Cost control) Fabricated Steel Products makes steel storage containers for various chemical products. The company uses a job order costing system and obtains jobs based on competitive bidding. For each project, a budget is developed.

One of the firm’s products is a 55-gallon drum. In the past year, the company made this drum on four separate occasions for four different cus¬ tomers. Financial details for the four orders follow.

Assume that you are the company’s controller.
Write a memo to manage-
ment describing any problems that you perceive in the data presented and the steps that should be taken to eliminate recurrence of these problems.LO1.

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Date Job No. Quantity Bid Price Budgeted Cost Actual Cost. Jan. 17 2118 30,000 $150,000 $120,000 $145,000 Mar, 13 2789 25,000 125,000 100,000 122,000 Oct. 201 4300 40,000 200,000 160,000 193,000 Dec. 3 4990 35,000 175,000 140,000 174,000