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Oriole'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
Oriole'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 1,000 sessions. The company has invested $2,600,000 in the studio and expects a return on investment (ROI) of 18%. Budgeted costs for the coming year are as follows. Per Session Total Direct materials $60 Direct labor $435 Variable overhead $50 Fixed overhead $935,000 Variable selling and administrative expenses $40 Fixed selling and administrative expenses $880,000 Determine the total unit cost per session. Total unit cost per session: $
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