Engraved Awards, 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 an executive education program at a local university. The company sells the plaque to the university for $20 each.
Each plaque has a brass plate engraved with the name of the participant. Engraving requires approximately 10 minutes per name. Improperly engraved names must be redone. The plate is screwed to a walnut backboard. This assembly takes approximately 5 minutes per unit. Improper assembly must be redone using a new walnut backboard.
During the first half of the year, the university had two separate executive education classes. The job cost sheets for the two separate jobs indicated the following information:

a. Why did the cost per plaque increase from $13.90 to $16.68?
b. What improvements would you recommend for Engraved Awards,Inc.?

Job 223 March 28 Cost per Unit Units Job Cost Direct materials: Wood s 2.00/unit 42 units 42 units 7.0 hrs. 3.5 hrs. 10.5 hrs. 84.00 100.80 105.00 42.00 252.00 $583.80 42 13.90 Brass Engraving labor Assembly labor Factory overhead 2.40/unit 15.00/hr 12.00/hr 24.00/hr Plaques shipped Cost per plaque Job 275 May 16 Cost per Unit Units Job Cost Direct materials: Wood s 2.00/unit Brass Engraving labor Assembly labor Factory overhead 60 units 60 units 10 hrs. 5 hrs. 15 hrs. $120.00 144.00 150.00 60.00 360.00 $834.00 2.40/unit 15.00/hr 12.00/hr 24.00/hr Plaques shipped Cost per plaque 16.68