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Reef Office Supplies is interested in estimating the cost involved in hiring new employees. The following information is available regarding the costs of operating the Human Resource department at Reef Office Supplies in May when there were 60 new hires.Human Resource DepartmentMayStaff salaries...............$33,000Manager salary..............$ 8,000Office supplies..............$ 300Depreciation of office equipment......$ 400Share of building cost (based on square feetOccupied by Human Resources) .......$ 2,000Total.................$43,700
Required:
a. Use account analysis to determine fixed cost per month and variable cost per new hire.b. The company is planning to hire 70 employees in June. Estimate the total cost of Human Resources for June.c. What is the expected incremental cost associated with hiring 10 more employees than were hired in May?
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