Analyze the standard costing system at Tesla Inc.'s Gigafactory for manufacturing electric vehicles. Calculate the direct material and direct labor variances for producing 500 units, given actual direct materials cost of $50,000 and actual direct labor cost of $70,000. Discuss the causes of each variance and their implications for cost control.

Process Costing

• Scenario Format:

PepsiCo's bottling plant uses the process costing method. The total production costs are $2,000,000, and the output is 100,000 units. Explain how the weighted average costing method is applied to calculate the cost per unit in this scenario. Discuss the advantages of this costing method for PepsiCo.