Duncan 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 an executive education program at a local university. The company sells the plaque to the university for $160 each. Each plaque has a brass plate engraved with the name of the participant. Engraving requires approximately 20 minutes per name. Improperly engraved names must be redone. The plate is screwed to a walnut backboard. This assembly takes approximately 10 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 $101.00 to $154.00?b. What improvements would you recommend for Duncan TrophiesInc.?

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Job 201 April 12 Cost per Unit Units Job Cost Direct materials: $ 1,920 1,440 1,200 60 units 60 units Wood $32.00/unit 24.00/unit 60.00/hr. Brass Engraving labor Assembly labor Factory overhead 20 hrs. 45.00/hr. 35.00/hr. 10 hrs. 450 30 hrs. 1,050 $ 6,060 Plaques shipped Cost per plaque 60 $ 101.00 May 6 Job 212 Units Cost per Unit Job Cost Direct materials: $32.00/unit 48 units 1,536 Wood Brass 24.00yunit 60.00/hr. 45.00/hr. 48 units 1,152 Engraving labor Assembly labor 28 hrs. 1,680 630 14 hrs. Factory overhead 35.00/hr. 42 hrs. 1,470 $ 6,468 42 Plaques shipped Cost per plaque $ 154.00