Identify direct materials and labor costs for producing electric vehicles.

Allocate indirect manufacturing overhead costs using process costing.

Calculate the total cost per electric vehicle model (e.g., Mustang Mach-E, F-150 Lightning).

Conduct a variance analysis comparing budgeted and actual costs.

Recommend cost-saving strategies to enhance profitability in electric vehicle production.

Cost Components for Electric Vehicle Production:

Cost Type	Annual Amount ($) per Year
Direct Materials	2,000,000,000
Direct Labor	1,200,000,000
Indirect Manufacturing Overhead	500,000,000
Total Fixed Costs	800,000,000
Production Volume (units per year)	200,000