Pfizer Inc. produces pharmaceuticals in batches. In August 2037, the company produces 10 batches of a vaccine costing $4,000,000 in total. Each batch size is 20,000 units.

Requirements:

• Allocate costs to each batch using activity-based costing.
• Perform a cost variance analysis for each batch.
• Calculate the cost per unit for each batch.
• Prepare a report on cost drivers and their impact on production costs.
• Recommend ways to improve cost efficiency and reduce waste.