Exxon Mobil Corporation is analyzing its refinery operating costs using different costing methods:

• Requirements:
  • Calculate the Standard Cost per barrel of refined oil:
    • Direct Costs: $60
    • Indirect Costs: $30
• Implement Marginal Cost Accounting to assess the cost impact of refining additional barrels.
• Apply Activity-Based Costing to allocate maintenance and compliance costs.
• Discuss how each costing method influences operational decision-making and cost control at ExxonMobil.

Standard Cost Calculation:

Category	Amount per Barrel ($)
Direct Costs	$60
Indirect Costs	$30
Total Standard Cost per Barrel	$90