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Conduct a variance analysis for Tesla Inc.'s production costs for the fiscal year 20XX. The standard cost of producing 1,000 units of Tesla's electric vehicles

Conduct a variance analysis for Tesla Inc.'s production costs for the fiscal year 20XX. The standard cost of producing 1,000 units of Tesla's electric vehicles is $2 million, including direct materials, direct labor, and manufacturing overhead. The actual cost of producing 1,000 units amounted to $2.2 million. Calculate the direct materials variance, direct labor variance, and manufacturing overhead variance. Interpret each variance and identify potential causes for the discrepancies from the standard costs.

Variance Type

Calculation

Amount ($)

Direct Materials

Standard Cost - Actual Cost


Direct Labor

Standard Cost - Actual Cost


Manufacturing Overhead

Standard Cost - Actual Cost


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