Amazon.com, Inc. is analyzing its fulfillment center costs using various accounting methods:

• Requirements:
  • Calculate the Standard Cost per unit for a new electronic device:
    • Direct Materials: $50
    • Direct Labor: $20
    • Manufacturing Overhead: $10
• Implement Marginal Cost Accounting to assess the cost impact of handling peak season orders.
• Apply Activity-Based Costing to allocate warehouse operation and shipping costs.
• Discuss how each costing method influences inventory management and profitability at Amazon.

Standard Cost Calculation:

Category	Amount per Unit ($)
Direct Materials	$50
Direct Labor	$20
Manufacturing Overhead	$10
Total Standard Cost per Unit	$80