Bramble's Recording Studio rents studio time to musicians in 2-hour blocks. Each session includes the use of the studio facilities, adigital recording of the performance, and a professional music producer/mixer. Anticipated annual volume is 1,140 sessions. Thecompany has invested $2,346,120 in the studio and expects a return on investment (ROI) of 20%. Budgeted costs for the coming yearare as follows.PerTotalSessionDirect materials (CDs, etc.)$20Direct labor$405Variable overhead$45Fixed overhead$1,077,300Variable selling and administrative expenses$40Fixed selling and administrative expenses$575,700

let's break down the information provided and calculate the expected profitability for Bramble's…

Answered: Bramble's Recording Studio rents studio…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter12: Activity-based Management

Section: Chapter Questions

Problem 4CE: Foy Company has a welding activity and wants to develop a flexible budget formula for the activity....

See similar textbooks

Similar questions

Wildhorse'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 1,400 sessions. The company has invested $2,212,000 in the studio and expects a return on investment of 20%. Budgeted costs for the coming year are as follows: (a) Per Session Total Direct materials (tapes, CDs, etc.) $20 Direct labour 400 Variable overhead 45 Fixed overhead $1,330,000 Variable selling and administrative expenses 40 Fixed selling and administrative expenses 728,000 Your answer is correct. Determine the total cost per session. Total cost per session $ 1975 SUPPOR
Blossom'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 1,000 sessions. The company has invested $1,963,500 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.) $20 Direct labour. 380 Variable overhead 40 Fixed overhead $925,000 Variable selling and administrative expenses 30 Fixed selling and administrative expenses 475,000
Flounder'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 1,160 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 year 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, a 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 year are as follows. Direct materials (CDs, etc.) Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses (a) Your answer is correct. Determine the total cost per session. Total cost $ (b) eTextbook and Media 1970 ROI $ Per Session $ 20 $405 $55 $35 per session Total per session $1,102,000 $585,800 Determine the desired ROI per session. (Round answer to 2 decimal places, e.g. 10.50.) Attempts: 1 of 5 used
Grouper'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 1,020 sessions. The company has invested $2,299,080 in the studio and expects a return on investment (ROI) of 20%. Budgeted costs for the coming year are as follows. Direct materials (CDs, etc.) Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses $40 Fixed selling and administrative expenses (a) Per Session $20 $395 $45 Your Answer Correct Answer Total $974,100 $515,100
Riverbed'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 1,120 sessions. The company has invested $2,304,960 in the studio and expects a return on investment (ROI) of 20%. Budgeted costs for the coming year are as follows. Direct materials (CDs, etc.) Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Per Session $20 $410 $45 $35 Total $1,064,000 $560,000
Alma's Recording Studio rents studio time to musicians in 2-hours 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 $2,352,000 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 $50 Fixed overhead $950,000 Variable selling and administrative expenses $40 Fixed selling and administrative expenses $500,000 c. Calculate the markup percentage on the total cost per session. d. Calculate the target price per session.
Alma's Recording Studio rents studio time to musicians in 2-hours 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 $2,352,000 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 $50 Fixed overhead $950,000 Variable selling and administrative expenses $40 Fixed selling and administrative expenses $500,000 a. Determine the total cost per session. b. Determine the desired ROI per session.
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 1.200 sessions. 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: Direct materials (tapes, CDs, etc.) Direct labour Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Per Session $20 425 60 45 Total $1,134,000 582,000
Monty'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 1,000 sessions. The company has invested $2,364,000 in the studio and expects a return on investment (ROI) of 20%. Budgeted costs for the coming year are as follows. Direct materials (CDs, etc.) Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses $40 Fixed selling and administrative expenses (a) Per Session $20 $405 $50 Determine the total cost per session. Total $950,000 $505.000 Ac Qu Acc Qu Acco Que Accou Ques Accour Ques Accoun Quest Account Viewir Accounti
Create a budget for the following project: Blazer Company plans on purchasing new equipment to retool its manufacturing process. The project will involve the acquisition of equipment, installation of the new equipment, selling off the old equipment and training the workforce on the new equipment and processes. Blazer expects this project to take two years from beginning to end. Costs and expected income for the project are as shown below. Your task is to create a two-year cash budget for the project and compute a return on investment (ROI) for the project. You may ignore the time value of money in your calculation. You may make reasonable assumptions to complete this problem so long as you document them. Facts: a. The equipment to be purchased will cost $455,000. The equipment will be purchased and paid for at the beginning of Year 1. b. Installation cost will be $55,000. c. Blazer will purchase a maintenance contract for the equipment. The first year of maintenance is included in the…
The Rock of Aegis presents a series of concerts throughout the year. Budgeted fixed costs total $300,000 for the concert season; variable costs are expected to average $5 per patron. The orchestra uses flexible budgeting.What is the Total costs at 9,500 patrons?

SEE MORE QUESTIONS

Recommended textbooks for you

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Financial And Managerial Accounting

Accounting

ISBN:

9781337902663

Author:

WARREN, Carl S.

Publisher:

Cengage Learning,

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Financial And Managerial Accounting

Accounting

ISBN:

9781337902663

Author:

WARREN, Carl S.

Publisher:

Cengage Learning,

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Managerial Accounting: The Cornerstone of Busines…

Accounting

ISBN:

9781337115773

Author:

Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS