Job costs and bids, comparing actual and estimated costs Uyeno Electronic Company manufactures a variety of electronic components. In May 2006, the company received an invitation from Takayama, Inc., to bid on an order of 1,000 units of component C371 that must be delivered by August 16, 2006. The following are the standard (estimated) requirements and prices for 1,000 units of C371:

The cost of support resources is assigned to jobs based on direct labor hours (a single cost driver rate system). The estimated support costs for 2006 are \(\$ 300,000\), and the estimated direct labor hours are 50,000 . Uyeno has a policy to add a \(20 \%\) markup to estimated job costs to arrive at the bid price.
Required

a. Prepare a job bid sheet to determine the bid price for this job.

b. Assume that Takayama, Inc., accepted Uyeno's bid. After producing and delivering the 1,000 units of C371 to Takayama on August 4, Uyeno's management accountants compiled the following information about this job:

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 Uyeno's point of view?

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QUANTITY Direct material Direct labor 2,000 units PRICE $10 per unit 1,000 hours $10 per hour