Kano Textiles Plc uses batch costing. A batch of 2,000 metres of fabric incurs total production costs of ₦1,640,000. The batch is sold at a mark-up of 25% on cost. What is the selling price per metre?

Cost per metre = ₦1,640,000 ÷ 2,000 = ₦820. Selling price per metre = ₦820 × 1.25 = ₦1,025. Batch costing treats the entire batch as a single cost unit, and the unit cost is derived by dividing total batch cost by the number of units in the batch.