Using the Smith's BBQ Report, if hourly wages increase by 10% next week from the current week, and all other costs stay constant, what will the variance of Total Payroll be next week?

$13,177

$9,347

$1,198

$858

1 answer

To determine the variance in Total Payroll due to a 10% increase in hourly wages, we need to know the current total payroll amount.

Assuming the current total payroll is $13,177 (as provided in the options), let's calculate the increase:

  1. Calculate the increase in total payroll due to the wage hike:

    • Current Total Payroll: $13,177
    • Increase in wages: 10% of $13,177
    • Increase = 0.10 * $13,177 = $1,317.70
  2. Calculate the new total payroll:

    • New Total Payroll = Current Total Payroll + Increase
    • New Total Payroll = $13,177 + $1,317.70 = $14,494.70
  3. Calculate the variance of Total Payroll:

    • Variance = New Total Payroll - Current Total Payroll
    • Variance = $14,494.70 - $13,177 = $1,317.70

Given the options provided, if we consider that the total payroll originally was one of the given values, we have:

If the original payroll were $9,347 instead, the 10% increase would be $934.70, making the new payroll $10,281.70, and the variance would also be $934.70.

However, if the original payroll were $1,198 or $858, the amounts increase would be significantly lower as well.

Conclusion

If we look into the options you've provided, the variances calculated do not match perfectly with the values listed. However, if we focus on standard calculations using 10% increases, you can follow the same pattern to arrive at which payroll fits your report's context the best based on original input figures.

If sticking to classic payroll records and small percentages:

  • Total Payroll standard increases could indicate either the smallest increases or to go larger based on working hours.

Rounding the percentages might also indicate how close to the original raises to get into a clear payroll alignment with candidates and workforce planning.

So, please verify or match against your known payroll reports to accurately determine which choice reflects the next week's variance. Each payroll or payroll type could rely on hour differences, thus, please adjust your calculations based accordingly!