Determining cost behavior for depreciation. The depreciation cost for the Scott Company is $40,000 per month. a.

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Determining cost behavior for depreciation. The depreciation cost for the Scott Company is $40,000 per month.

a. What should the depreciation cost per direct labor hour be if 2,000 hours are worked?

b. What should the depreciation cost per direct labor hour be if 2,500 hours are worked?

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

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