Oriole's Custom Electronics (OCE) sells and installs complete security, computer, audio, and video systems for homes, On newly constructed homes, it provides bids using time-and-material pricing. The followino budgeted cost data are available: Sandhill'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 1,500 sessions. The company has invested $2,199,375 in the studio and expects a return on investment of 20%. Budgeted costs for the coming year are as follows