D Wildhorse's Recording Studio rents studio time to musicians in two-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 1,400 sessions. The company has invested $2.223,200 in the studio and expects a return on investment of 25%. Budgeted costs for the coming year are as follows: Per Session Total Direct materials (tapes, CDs, etc.) $25 Direct labour 415 Variable overhead 40 Fixed overhead $1,358,000 Variable selling and administrative expenses 35 Fixed selling and administrative expenses 700.000 (a) Your answer is correct