Coca-Cola Company manufactures beverages using batch costing in February 2034. The company produces 5 batches of soda with the following costs:

• Direct Materials: $2,000,000
• Direct Labor: $1,500,000
• Factory Overhead: $1,000,000

Additional information:

• Overhead costs are allocated based on batch size.
• Batch sizes vary: Batch 1: 100,000 bottles, Batch 2: 120,000 bottles, Batch 3: 80,000 bottles, Batch 4: 110,000 bottles, Batch 5: 90,000 bottles.

Required:

• Calculate the total batch costs for each production run.
• Allocate overhead costs to each batch based on batch size.
• Analyze how batch size affects cost per unit.