Q33

Cullumber'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 $1.999 200 in the studio and expects a return on investment of 25%. Budgeted costs for the coming year are as follows: Per Session Total $25 380 Direct materials (tapes, CDs, etc.) Direct labour Variable overhead Fixed overhead Variable selling and administrative expenses 50 $1,432,500 30 Fixed selling and administrative expenses 780,000 Determine the total cost per session. Total cost per session Save for Later Attempts: 0 of 2 used Submit