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 1.100 sessions. The company has invested $2,064,480 in the studio and expects a return on investment of 25%. Budgeted costs for the coming year are as follows: Direct materials (tapes, CDs, etc.) Direct labour Variable overhead Per Session Total $25 385 45 Fixed overhead $1,056,000 Variable selling and administrative expenses 40 Fixed selling and administrative expenses 550,000 C