I’m working on a accounting exercise and need an explanation and answer to help me learn.
Safe Ridge Foods is interested in estimating the cost involved in hiring new employees for its retail stores. The following information is available regarding the additional costs of operating the company’s Human Resource Department in May when there were 6 new hires.
Human Resource Department
Staff hourly wages21,600
Office rental space1,800
c.What is the expected incremental cost associated with hiring 3 more employee in June than were hired in May?