Ford Motor Company uses batch costing for vehicle manufacturing. In March 2031, the company produces 5 batches of trucks with the following costs:

• Batch 1: Direct materials $40 million, Direct labor $20 million, Factory overhead $15 million
• Batch 2: Direct materials $42 million, Direct labor $21 million, Factory overhead $16 million
• Batch 3: Direct materials $41 million, Direct labor $20.5 million, Factory overhead $15.5 million
• Batch 4: Direct materials $45 million, Direct labor $22 million, Factory overhead $17 million
• Batch 5: Direct materials $48 million, Direct labor $23 million, Factory overhead $18 million

Required:

• Classify each cost as variable or fixed.
• Calculate the total variable costs for each batch.
• Determine the total fixed costs for all batches produced.
• Analyze the cost structure of Ford Motor Company using batch costing.
• Prepare a batch costing statement focusing on variable and fixed costs for Ford Motor Company.