Tesla, Inc. is a leading electric vehicle manufacturer known for its innovative production processes. As part of its cost accounting analysis, Tesla wants to evaluate the manufacturing costs associated with two of its popular vehicle models: Model S and Model 3.

• Model S Production Costs:
  • Direct materials cost per unit: $40,000
  • Direct labor cost per unit: $10,000
  • Manufacturing overhead cost per unit: $15,000
• Model 3 Production Costs:
  • Direct materials cost per unit: $30,000
  • Direct labor cost per unit: $8,000
  • Manufacturing overhead cost per unit: $12,000

Requirements:

1. Calculate the total manufacturing cost per unit for Model S.
2. Determine the total manufacturing cost per unit for Model 3.
3. Compare the total manufacturing costs of Model S and Model 3 to identify the cost differences.