Decision making with job order costs 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 Brass Engraving labor Assembly labor $20/unit 15/unit 20/hr 30/hr 10/hr 40 units 800 600 400 300 300 $2,400 40 $60 40 units 20 hrs. 10 hrs. 30 hrs. Factory overhead Plaques shipped Cost per plaque June 10 Cost per Unit Job 105 Units Job Cost Direct materials Wood Brass Engraving labor Assembly labor $20/unit 34 units 680 510 340 255 255 $2,040 + 30 68 15/unit 20/hr. 30/hr. 10/hr. 34 units 17 hrs. 8.5 hrs. 25.5 hrs. Factory overhead Plaques shipped Cost per plaque a. Why did the cost per plaque increase from $60 to $68? The cost of the plaques increased because Job 105 used b. What improvements would you recommend for Raneri Trophies Inc.? per unit than did Job 101