L'Oral S.A. manufactures cosmetic products in batches. During May 2024, the company produces 3 batches of moisturizers, incurring the following costs: Cost Category Batch 1

L'Oréal S.A. manufactures cosmetic products in batches. During May 2024, the company produces 3 batches of moisturizers, incurring the following costs:

Cost Category	Batch 1 ($)	Batch 2 ($)	Batch 3 ($)
Direct Materials	40,000	45,000	42,000
Direct Labor	25,000	28,000	26,000
Factory Overhead	20,000	22,000	21,000

Required:

• Calculate the total manufacturing costs for L'Oréal S.A. in May 2024.
• Determine the cost per unit for each batch produced.
• Allocate overhead costs using a predetermined rate based on direct labor hours.
• Prepare a batch costing statement for May 2024.
• Analyze the cost per unit differences between batches and suggest cost reduction strategies.