Solution Atkinson

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Chapter 3 Traditional Cost Management Systems QUESTIONS 4-1 Costs need to be estimated for individual jobs in order to bid for them and to price them competitively. Estimated costs are also useful for comparison with actual costs for management control purposes. Costs may differ across individual jobs because jobs may differ in their materials content, the hours of labor required to manufacture them and in the demand they place on support activity resources. 4-2 A typical job bid sheet has the following five distinct parts: 1.The name of the customer, product and quantity required. 2.Estimated quantity and current price for different materials. 3.The wage rate and hours required for direct labor. 4. Estimated manufacturing support cost. 5.Estimated total cost, bid price, unit cost and unit price. 4-3 Two types of information are required to estimate direct material cost for a job. The

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