Registered Health Information Administrator (RHIA) — Question 64
If the budgeted payroll expense was $24,300 and the actual payroll expense was $25,800, what the percentage of cost variance?
Answer options
- A. 6.0%
- B. 0.58%
- C. 6.17%
- D. 6.7%
Correct answer: C
Explanation
The correct answer is C, which is calculated by taking the difference between actual and budgeted expenses, dividing by the budgeted amount, and multiplying by 100. The other options do not accurately reflect the correct calculation of cost variance percentage, as they either miscalculate the difference or misapply the formula.