If the budgeted payroll expense was $24,300 and the actual payroll expense was $25,800, what the percentage of cost variance?

Question

Quizplus · Accepted Answer

Firstly, we need to calculate the cost variance which is the difference between the budgeted and actual payroll expense:

Cost Variance = Actual Expense - Budgeted Expense
Cost Variance = $25,800 - $24,300
Cost Variance = $1,500

To find the percentage of cost variance, we need to divide the cost variance by the budgeted expense and multiply by 100:

Percentage of Cost Variance = (Cost Variance / Budgeted Expense) * 100
Percentage of Cost Variance = ($1,500 / $24,300) * 100
Percentage of Cost Variance = 6.17%

Therefore, the answer is C) 6.17%.

If the Budgeted Payroll Expense Was $24,300 and the Actual