Exercise 4.8 (LO1) Account Analysis 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: May Staff wages Manager salary Office supplies Human Resources Department Depreciation of office equipment Share of building cost (based on square feet occupied by Human Resources) Total $30,000 7,500 300 500 2,000 $40,300 Required a. Use account analysis to determine fixed cost per month and variable cost per new hire. Assume that only staff wages and office supplies are variable costs. b. The company is planning to hire 75 employees in June. Estimate the total cost of Human Resources for June. c. What is the expected incremental cost associated with hiring 15 more employees than were hired in May?