Raneri Trophies Inc. uses a job order cost system for determining the cost to manufacture award products (plaques and trophies). Among the company€™s products is an engraved plaque that is awarded to participants who complete a training program at a local business. The company sells the plaques to the local business for $ 80 each.
Each plaque has a brass plate engraved with the name of the participant. Engraving requires approximately 30 minutes per name. Improperly engraved names must be redone. The plate is screwed to a walnut backboard. This assembly takes approximately 15 minutes per unit. Improper assembly must be redone using a new walnut backboard.
During the first half of the year, Raneri had two separate plaque orders. The job cost sheets for the two separate jobs indicated the following information:

a. Why did the cost per plaque increase from $ 60 to $ 68?
b. What improvements would you recommend for Raneri TrophiesInc.?

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May 4 Cost per Unit Job 101 Units Job Cost Direct materials: $20/unit 15/unit 20/hr. 30/hr. 10/hr. 40 units 40 units 20 hrs 10 hrs. 30 hrs. $ 800 Engraving labor Assembly labor Factory overhead 400 Plaques shipped Cost per plaque 2,400 40 S 60 ob 105 June 10 Cost per Unit Units Job Cost Direct materials: Engraving labor Assembly labor Factory overhead $20/unit 15/unit 20/hr 34 units 34 units 17 hrs 8.5 hrs. 25.5 hrs. S 680 510 255 255 10/hr. Plaques shipped Cost per plaque S 68