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Sheridan 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

Sheridans 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 1,200sessions. The company has invested $1,995,840 in the studio and expects a return on investment of 25%. Budgeted costs for the coming year are as follows:

Per Session
Total
Direct materials (tapes, CDs, etc.)
$20
Direct labour
425
Variable overhead
60
Fixed overhead
$1,134,000
Variable selling and administrative expenses
45
Fixed selling and administrative expenses
582,000

(a)

Determine the total cost per session.

Total cost per session
$enter the total cost per session in dollars

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