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Alma'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
Alma'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 1,100 sessions. The company has invested $2,346,500 in the studio and expects a return on investment (ROI) of 22%. Budgeted costs for the coming year are as follows. Per Total Session 20.25 Direct materials (tapes, CDs, etc) 397.61 Direct labor 49.58 Variable overhead 1,044,593 Fixed overhead Variable selling and administrative expenses 43.96 Fixed selling and administrative expenses 549,131. LINK TO TEXT
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