Calculation of Expense Sales Salaries Paid During 2020 Were $ 90,000. Advances to 90,000

question 83

Essay

Calculation of expense
Sales salaries paid during 2020 were $ 90,000. Advances to salesmen were $ 1,300 on January 1, 2020, and $ 800 on December 31, 2020. Sales salaries payable were $ 1,300 on January 1, 2020, and $ 1,400 on December 31, 2020.
Instructions
Calculate the Sales Salaries Expense for calendar 2020.

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Definitions:

Efficiency Variance

The difference between the actual amount of input (time, materials, etc.) used in production and the standard amount expected to be used.

Direct Labor-Hours

The sum of the hours spent by workers directly manufacturing a product.

Variable Overhead

Indirect production costs that fluctuate with the level of output, such as utilities or materials used in the manufacturing process.

Efficiency Variance

A measure used in cost accounting to evaluate the efficiency of resource usage, calculated as the difference between actual usage and the standard or expected usage.