Tesla, Inc. is using Standard Cost Accounting for its electric vehicle production:

Requirements:

• Calculate the Standard Cost per electric vehicle:
  • Direct Materials: $40,000
  • Direct Labor: $10,000
  • Manufacturing Overhead: $5,000

• Apply Marginal Cost Accounting to assess the cost impact of producing additional vehicles.
• Evaluate the benefits of Activity-Based Costing in allocating battery production costs.
• Discuss how each costing method influences pricing and cost control in electric vehicle manufacturing.

Standard Cost Calculation:

Category	Amount per Vehicle ($)
Direct Materials	$40,000
Direct Labor	$10,000
Manufacturing Overhead	$5,000
Total Standard Cost per Vehicle	$55,000