Almas 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 1,160 sessions. The company has invested $ 2,399,460 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		$405
Variable overhead		$ 55
Fixed overhead					$1,102,000
Variable selling and administrative expenses		$ 35
Fixed selling and administrative expenses					$ 585,800

(a)

Determine the total cost per session.

Total cost

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per session

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