Martinez's Recording Studio rents studio time to musicians in 2-hour blocks. Each session includes the...
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Martinez's Recording Studio rents studio time to musicians in 2-hour blocks. Each session includes the use of the studio facilities, a digital recording of the performance, and a professional music producer/mixer. Anticipated annual volume is 1,190 sessions. The company has invested $2,356,200 in the studio and expects a return on investment (ROI) of 20%. Budgeted costs for the coming year are as follows. Per Session Total Direct materials (CDs, etc.) $ 20 Direct labor $415 Variable overhead $ 50 Fixed overhead $1,130,500 Variable selling and administrative expenses $ 45 Fixed selling and administrative expenses $595,000 (a) Determine the total cost per session. Total cost $ per session
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