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from C entMain.do ssionLocator-assignment-take&inprogress-false Raner Trophies ne usin ③job order cost system for determi in the cost to manufacture award pro ducts plaques and trophies Among the companys 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 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: 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 Job 101 May 4 Cost per Unit Job Cost $20/unit Brass Engraving labor Assembly labor Factory overhead 15/unit 10 hrs. $2,400 Plaques shipped Cost per plaque Job 105 June 10 Cost per Unit Units Job Cost eck Hy Works move Check My Wok uses Previous Next 12:55 AM 다 e ^圓脈偏 1/31/2019 (2
labor 10 hrs. Factory overhead 10/hr 2.400 ÷40 Job 105 June 10 Units Job Cost 34 units 34 units 17 hrs. 8.5 hrs. 25.5 hrs Wood $20/unit Brass Engraving labor Assembly labor Factory overhead 2,040 a. Why did the cost per plaque increase from $60 to $687 Next S more Check My Work uses 12:55 AM ^四脈4 1/31/2019 1/31/2019
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Job 101 ob 105 Analysis Units Cost per Unitspet Difference in% Units consumed Cost per unit Particulars Job cost Units consumed per Job cost Difference unit Plaques Direct Materials Wood Brass Engraving Labor Assembly Labor Factory overhead 20 15 20 30 10 0.133 13.333333 0.133 13.333333 0.067 13.333333 0.033 13.333333 0.100 13.333333 40 40 20 800 600 400 300 300 400 40 60 20 15 20 30 10 34 34 17 8.5 25.5 1.133 1.133 0.567 0.283 0.850 680 510 340 255 255 2040 30 68 0.5 0.25 0.75 30 divide Plaques Shipped cost per plaque divide 8 13.333333 a. Why did the cost per plaque increase from $60 to $68? Answer: I. Because Material consumed in job 105 is 13.33% more than material consumed in job 102 2. Labor involved in job 105 also increased by 13.33% from job 101 3. Factory overhead in job 105 is 13.33% more than material consumed in job 102 b. What improvement would you recommend for Raneri Trophies Inc.? Answer 1. To reverse the increase in cost per plaque Raneri Trophies should focus on effective utilization of Material consumed, Labor and factory Overhead 2. Raneri Trohies inc. should reduce the consumption of the above cost by 13.33% 3. Company should look after and take measures for avoid errors in Engraving and assembling to reduce consumption of Material, labor and overhead

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