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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
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 the performance, and a professional music producer/mixer. Anticipated annual volume is 1,300 sessions. The company has invested $2,043,600 in the studio and expects a return on investment of 20%. Budgeted costs for the coming year are as follows: Per Session Total Direct materials (tapes, CDs, etc.) $25 Direct labour Variable overhead 415 40 Fixed overhead $1,254,500 Variable selling and administrative expenses 45 Fixed selling and administrative expenses 617,500
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