Unit Cost Analysis Hathaway 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 plaques to the university for $50 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 an oak backboard. This assembly takes approximately 6 minutes per unit. Improper assembly must be redone using a new oak backboard. During the first half of the year, the university had two separate executive education dasses. The job rost sheets for the two separate jobs indicated the following information: Job 05-1 May 2 Cost per Unit Units Job Cost Direct materials: Wood $7.50/unit $562.50 75 units 4.00/unit 75 units Brass 300.00 20.00/hr 40 hrs. 800.00 Engraving labor 15.00/hr. 7.50 hrs. Assembly labor 212.50 3.00/hr 45 hrs. 135.00 Factory overhead 51 910.00 Total sending data to ser Plaques shipped 75 Cost per plaque (rounded to nearest cent) $25.47 Job 08-11 August 25 Cost per Unit Units Job Cost Direct materials: Wood $ 7.50/unit 85 units $ 637.50 Brass 4.00/unit 85 units 340.00 Engraving labor 20.00/hr. 50 hrs. 1,000.00 Assembly labor 15.00/hr. 8 hrs. 120.00 Factory overhead 3.00/hr. 48 hrs. 144.00 Total $2,241.50 Plaques shipped + 80 $ 28.02 Cost per plaque (rounded to nearest cent) a. Why did the cost per plaque increase from $25.47 to $28.02? There was an increase in material cost. b. Based upon unit costs, what is an area of concern for Hathaway Trophies, Inc.? Both Engraving and assembly 300/hr 48 hrs 144.00 There was an increase in material cost. 1241.50 There was an increase in labor cost. + 80 There was an increase in the overheads allocated. 28.02 More labor and materials were used per unit for Job 08-11 than did Job 05-1. There was an increase in material con b. Based upon unit costs, what is an area of concern for Hathaway Trophies, Inc.? Both Engraving and assembly Plaques shipped cd Engraving st cent) a. Assembly ease from $25.47 to $28.02? Both Engraving and assembly Hial cost. TI b. None of these n area of concern for Hathaway Trophi Both Engraving and assembly ass