Ford Motor Company is using Standard Cost Accounting for its vehicle production:

Requirements:

• Calculate the Standard Cost per vehicle:
  • Direct Materials: $15,000
  • Direct Labor: $10,000
  • Manufacturing Overhead: $5,000

• Apply Activity-Based Costing to allocate manufacturing overhead costs.
• Implement Marginal Cost Accounting to assess the cost of producing additional vehicles.
• Evaluate the benefits of Standard Cost Accounting in variance analysis and cost control.
• Discuss how ABC could improve cost allocation for different vehicle models.

Standard Cost Calculation:

Category	Amount per Vehicle ($)
Direct Materials	$15,000
Direct Labor	$10,000
Manufacturing Overhead	$5,000
Total Standard Cost per Vehicle	$30,000