Explain unit cost and total cost relationships. (Obj. 1). The depreciation cost for the Dunn Company is

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Explain unit cost and total cost relationships. (Obj. 1). The depreciation cost for the Dunn Company is $20,000 per month.

a. What should the depreciation cost per direct labor hour be if 4,000 hours are worked?

b. What should the depreciation cost per direct labor hour be if 4,500 hours are worked?

c. Is depreciation a fixed cost or a variable cost? Explain.

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Cost Accounting Principles And Applications

ISBN: 9780028034287

6th Edition

Authors: Horace R. Brock, Linda Herrington

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