Concord'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 1,180 sessions. The company has invested $2,336,400 in the studio and expects a return on investment (ROI) of 20%. Budgeted costs for the coming year are as follows. Per Total Session Direct materials (CDs, etc.) $ 20 Direct labor Variable overhead $400 $55 Fixed overhead $1,121,000 Variable selling and administrative expenses $45 Fixed selling and administrative expenses $601,800