Payroll, the average salary for Direct Labour
Why in Payroll, the average salary for Direct Labour is not equal to -20 (White Hat + Red Hat) ?
2 answers ( 0 marked as helpful)
Hi,
if the White Hat salary is 10 and the Red Hat Salary is 10, we take the AVERAGE salary of both divisions, which is also 10.
Think of this as the average price of two products. In this case, the products are working hours.
By definition, the average of A and B is calculated as (A+B)/2, so you need to divide 20 by 2 to get it.
I hope this makes sense.
Best,
Antoniya
if the White Hat salary is 10 and the Red Hat Salary is 10, we take the AVERAGE salary of both divisions, which is also 10.
Think of this as the average price of two products. In this case, the products are working hours.
By definition, the average of A and B is calculated as (A+B)/2, so you need to divide 20 by 2 to get it.
I hope this makes sense.
Best,
Antoniya
Hi,
Thank you, I didn't realise that we had to average the prices of the two products.
Thank you, I didn't realise that we had to average the prices of the two products.