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 1000 units of component C371 that must be delivered by August 16, 2006. The following are the standard estimated requirements and prices for 1000 units of C371:
Direct material- quantity 2000 units, price $10 per unit
Direct labor- quantity 1000 hours, price $10 per hour
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 300000 and the estimated direct labor hours are 50000. Uyeno has a policy to add a 20% markup to estimated job costs to arrive at the bid price.
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 1000 units of C371 to Takayama on August 4, Uyeno's management accountants compiled the following information about this job:
Direct material- actual quantity 2100 units, actual price $9.75 per unit
Direct labor- actual quantity 1000 hours, actually price $11.00 per hour
Prepare a job cost sheet to record the actual costs incurred on this job
File name: Uyeno-Electronic-Company.xls File type: application/vnd.ms-excel Price: $5
File name: Uyeno-Electronic-Company.xls File type: application/vnd.ms-excel Price: $5
