Luna Incorporated was facing a difficult year and decided to reorganize their business processes. The reorganization resulted in 150 out of 2300 employees receiving layoff notices in advance of the company layoff at the end of the next month, consistent with the WARN Act. It is the companys policy to give one (1) month severance to employees who are laid off. The company assumes 12 months/year, 4 weeks/month, and 40 hours per week as full-time employees.

Each employee went through an exit interview with an external firm. The firm charged a base rate of $2,000 plus an additional $25 per employee interviewed. Since this was done during working hours, the employees had to be reimbursed for their time doing the interview, which was a half hour. The HR associate was not involved in the exit interview, but had to process the employees on their last day, including all exit paperwork and severance check distribution, which took one (1) hour per employee (for which they also needed to be paid). The HR associate makes $15.50/hour and the average wage rate for the laid off employees is $19.60/hour.

If the Separation Costs = exit interview cost + administrative costs + separation pay, what is the total cost for Luna Inc.s layoff?