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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: Job 101 May 4 Cost per Unit Units Job Cost Direct materials: Wood $20/unit 40 units 800 Brass 15/unit 40 units 600 20/hr Engraving labor 20 hrs. 400 20 hrs 10 hrs Engraving labor Assembly labor Factory overhead 20/hr. 400 30/hr 300 30 hrs. 10/hr 300 $2,400 Plaques shipped 40 Cost per plaque 60 Job 105 June 10 Cost per Unit Job Cost Units Direct materials: $20/unit 34 units $ 680 Wood 34 units Brass 15/unit 510 Engraving labor Assembly labor Factory overhead 20/hr 17 hrs 340 8.5 hrs. 30/hr. 255 25.5 hrs 10/hr 255 $2,040 Plaques shipped Cost per plaque 30 68 Why did the cost per plaque increase from $60 to $68? What improvements would you recommend for Raneri Trophies Inc

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