(Question 1) The human resources department of Okay Supplies Ltd. has responsibility for all aspects of payroll and ongo

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Question 1 The Human Resources Department Of Okay Supplies Ltd Has Responsibility For All Aspects Of Payroll And Ongo 1 (183.37 KiB) Viewed 43 times

(Question 1) The human resources department of Okay Supplies Ltd. has responsibility for all aspects of payroll and ongoing management of the human resource function like the hiring of new employees, and all terminations. The human resource (HR) department report for the completed 2021 year, included the following: Average number of employees 40 Number of new hires 4 Number of terminations 2 Number of HR employees 5 HR department costs Salaries $4,000,000 Employee-related overhead (25% of HR salaries) 1,000,000 Office expenses (20% of salaries) 800,000 Travel & interview costs (10% salaries) 400,000 Advertising 500,000 Total actual cost $6,700,000 (Assumptions) In 2022, it is expected that the number of employees will rise to 45; there will be 5 new employees hired each earning $100,000. Assume the new employees all start for April 1, 2022. Inflation will run at 5% for advertising. Required Using the assumptions provided along with the 2021 financial information, prepare a Human Resource department budget for 2022. Explain how you would monitor this budget on a monthly basis.