PepsiCo, Inc. produces snacks using batch costing in March 2034. The company incurs the following costs for producing 4 batches of chips:

• Direct Materials: $1,500,000
• Direct Labor: $1,200,000
• Factory Overhead: $800,000

Additional information:

• Overhead costs are allocated based on machine hours.
• Machine hours: Batch 1: 10,000 hours, Batch 2: 12,000 hours, Batch 3: 8,000 hours, Batch 4: 11,000 hours.

Required:

• Calculate the total batch costs for each production run.
• Allocate overhead costs to each batch based on machine hours.
• Analyze how machine hours impact batch costing.