Murray Co Ltd Payroll (amended from ACCA Audit and Assurance, Kaplan, 2020)
Total payroll for the year ending 31 December 2021 was £1,220,000. At this time Murray Co Ltd had
34 employees.
Total payroll for the year ending 31 December 2022 is £1,312,000. Murray Co Ltd now has 37
employees.
All employees received a 7% pay rise on 31 March 2022.
a) Create an expectation of the total payroll cost for the year ending 31 December 2022
b) If you are subsequently told that all the new employees started on the 1 March 2022 on
salaries without the 7% 2022 uplift, show how this will change your expectation