Sandhill'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 $$2,500,000$ in the studio and expects a return on investment $($ROI$)$ of $15\%.$ Budgeted costs for the coming year are as follows.

$\backslash$table$[[,$Per Session,Total$],[$Direct materials,$$60,],[$Direct labor,$$370,],[$Variable overhead,$$50,],[$Fixed overhead,,$$1,020,000$