Forrester and Cohen is a small accounting firm, managed by Joseph Cohen since the retirement in December of his partner Brad Forrester. Cohen and his 4 CPAs together bill 775 hours per month. When Cohen or another accountant bills more than 155 hours per month, he or she gets an additional "overtime" pay of $62.00 for each of the extra hours: This is above and beyond the $5,000 salary each draws during the month. (Cohen draws the same base pay as his employees.) Cohen strongly discourages any CPA from working (billing) more than 240 hours in any given month. The demand for billable hours for the firm over the next 6 months is estimated below:

Month: Estimate of Billable Hours

Jan. 671

Feb. 561

Mar. 1122

Apr. 1331

May 715

June 627

Cohen has an agreement with Forrester, his former partner, to help out during the busy tax season, up to 240 hours in any given month if needed, for an hourly fee of $130. Cohen will not even consider laying off one of his colleagues in the case of a slow economy. He could, however, hire another CPA at the same salary, as business dictates.

a) Develop an aggregate plan for the 6-month period (enter your responses as whole numbers). Use regular time, then overtime, then Forrester, and then hire additional CPAs if needed.

Month	Est. of Billable hours	CPAs	Reg. time billable hours	Reg. time cost	Overtime hours	Overtime cost	Forrester hours	Forrester cost
Jan	671	?	?	?	?	?	?	?
Feb	561	?	?	?	?	?	?	?
Mar	1122	?	?	?	?	?	?	?
Apr	1331	?	?	?	?	?	?	?
May	715	?	?	?	?	?	?	?
Jun	627	?	?	?	?	?	?	?

b) Compute the cost of Cohen's plan of using overtime and Forrester.

Total cost= ?