Question
Marigolds 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
Marigolds 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 1,060 sessions. The company has invested $2,297,020 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 | $410 | |||||
| Variable overhead | $ 55 | |||||
| Fixed overhead | $1,007,000 | |||||
| Variable selling and administrative expenses | $ 40 | |||||
| Fixed selling and administrative expenses | $524,700 | |||||
(a)
Determine the total cost per session.
| Total cost | $enter the total cost per session in dollars | per session |
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Calculus
Authors: Ron Larson, Bruce H. Edwards
10th Edition
9781285057095
