Flounder's Recording Studio rents studio time to musicians in 2-hour blocks. Each session includes the use of the studio facilities, digital recording of the performance, and a professional music producer/mixer. Anticipated annual volume is 1,160 sessions. The company has invested $2,399,460 in the studio and expects a return on investment (ROI) of 20%. Budgeted costs for the coming wear are as follows. Direct materials (CDs, etc.) Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses a) Determine the total cost per session. Total cost $ Per Session $20 $405 $55 $35 per session Total $1,102,000 $585,800

Flounder's Recording Studio rents studio time to musicians in 2-hour blocks. Each session includes the use of the studio facilities, digital recording of the performance, and a professional music producer/mixer. Anticipated annual volume is 1,160 sessions. The company has invested $2,399,460 in the studio and expects a return on investment (ROI) of 20%. Budgeted costs for the coming wear are as follows. Direct materials (CDs, etc.) Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses a) Determine the total cost per session. Total cost $ Per Session $20 $405 $55 $35 per session Total $1,102,000 $585,800

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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