Sheffields 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 $2,376,000 in the studio and expects a return on investment (ROI) of 20%. Budgeted costs for the coming year are as follows.

		Per Session			Total
Direct materials (CDs, etc.)		$ 20
Direct labor		$400
Variable overhead		$ 55
Fixed overhead					$950,000
Variable selling and administrative expenses		$ 40
Fixed selling and administrative expenses					$515,000

(a)

Determine the total cost per session.

Total cost

$

per session