The human resources department of Okay Supplies Ltd. has responsibility for all aspects of payroll and...

 

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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 Number of new hires Number of terminations Number of HR employees HR department costs Salaries Employee-related overhead (25% of HR salaries) Office expenses (20% of salaries) Travel & interview costs (10% salaries) Advertising Total actual cost 40 4 2 $4,000,000 1,000,000 800,000 400,000 500,000 $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. 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 Number of new hires Number of terminations Number of HR employees HR department costs Salaries Employee-related overhead (25% of HR salaries) Office expenses (20% of salaries) Travel & interview costs (10% salaries) Advertising Total actual cost 40 4 2 $4,000,000 1,000,000 800,000 400,000 500,000 $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.

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ANSWER Statement of Human Resources Department Budget for the year 2022 Particulars Amount in Salari... View the full answer