L'Oral S.A. manufactures cosmetic products in batches. In January 2026, the company produces 3 batches of moisturizers with varying overhead costs: Batch Direct Materials ($)

L'Oréal S.A. manufactures cosmetic products in batches. In January 2026, the company produces 3 batches of moisturizers with varying overhead costs:

Batch	Direct Materials ($)	Direct Labor ($)	Factory Overhead ($)
Batch 1	80,000	40,000	25,000
Batch 2	85,000	42,000	26,000
Batch 3	82,000	41,000	25,500

Required:

• Calculate the total manufacturing costs for L'Oréal S.A. in January 2026.
• 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 January 2026.
• Analyze the cost per unit differences between batches and suggest cost reduction strategies.