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 Trophies Inc.?

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May 4 Cost per Unit Job 101 Units Job Cost Direct materials: 800 600 400 300 300 $2,400 40 60 Wood Brass Engraving labor Assembly labor Factory overhead $20/unit 15/unit 20/hr 30/hr 10/hr 40 units 40 units 20 hrs. 10 hrs. 30 hrs Plaques shipped Cost per plaque June 10 Cost per Unit Job 105 Units Job Cost Direct materials: $20/unit 15/unit 20/hr 30/hr 10/hr 34 units 34 units 17 hrs. 8.5 hrs. 680 510 340 255 255 $2,040 30 Wood Brass Engraving labor Assembly labor Factory overhead 25.5 hrs. Plaques shipped Cost per plaque