Job costs and bids; comparing actual and estimated costs Brumelle Electronic Company manufactures a variety of electronic components. In April 2000, the company received an invitation from Takayama, Inc. to bid on an order of 1000 units of component ICB371 that must be delivered by August 16, 2000. The fol¬ lowing are the standard (estimated) requirements and prices for 1000 units of ICB371:

(a)Prepare a job bid sheet to determine the bid price for this job.
Assume next that Takayama, Inc. accepted Brumelle's bid. After producing and delivering the 1000 units of ICB371 to Precision on August 4, Brumelle's manage¬ ment accountants compiled the following information about this job:

(b) Prepare a job cost sheet to record the actual costs incurred on this job.

(c) What are some possible explanations for the differences between the actual and the estimated quantities or costs for the job? Are the differences favorable from Brumelle's point of view?

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QUANTITY Direct material Direct labor 2000 units 1000 hours PRICE $10 per unit $10 per hour