If the budgeted payroll expense was $24,300 and the actual payroll expense was $25,800, what the percentage of cost variance?
If the budgeted payroll expense was $24,300 and the actual payroll expense was $25,800, what the percentage of cost variance?
To calculate the percentage of the cost variance, we need to find the difference between the actual payroll expense and the budgeted payroll expense, then divide that difference by the budgeted payroll expense, and finally multiply by 100 to convert it to a percentage. The formula is ((Actual Expense - Budgeted Expense) / Budgeted Expense) * 100. Therefore, ((25,800 - 24,300) / 24,300) * 100 = (1,500 / 24,300) * 100 ≈ 6.17%. Thus, the percentage of cost variance is 6.17%.
C 25,800 - 24,300 = 1,500; 1,500/24,300 = 0.0617 × 100 = 6.17% Answer = 6.17%