Sheffield'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 $1,280$ sessions. The company has invested $$2,359,040$ in the studio and expects a return on investment $($ROI$)$ of $20\%.$ Budgeted costs for the coming year are as follows.

$\backslash$table$[[,\backslash$table$[[$Per$],[$Session$]],$Total$],[$Direct materials $($CDs$,$ etc.$),$$$20,],[$Direct labor,$$405,],[$Variable overhead,$$50,],[$Fixed overhead,,$$1,216,000$