Total payroll burden across a team (SUMPRODUCT)

Hard Math Accounting pack
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The problem

Problem statement

Each person's salary and employer burden rate are on their row in A2:C4. Put the total employer cost — the sum of salary × burden rate — in the Total cell E2, rounded to two decimals.

Burden differs per person, so one division or one average rate gives the wrong number.

Problem data

Show the sheet as a table (selectable, copyable)
The exercise data, as a table
ABCE
1EmployeeSalaryBurden %Total employer cost
2Ada30000.25
3Ben40000.22
4Cleo25000.3

Notes

This is a weighted total, which is exactly what SUMPRODUCT does: it multiplies the two columns row by row and adds the results. Summing salaries and multiplying by an average burden rate is the classic wrong answer in payroll reconciliation.

How to approach

Your answer goes in E2.

  1. Target cell is E2
  2. Multiply salary by burden on each row
  3. Then add the rows together
  4. Shape: =ROUND(SUMPRODUCT(?, ?), ?)

Function guide

Related practice

FAQ

How do I total payroll burden?

=SUMPRODUCT(salaries, rates). Multiplying each row and adding is the only correct way when rates differ.

Why is the total not salary total × average rate?

A weighted average is not the same as multiplying totals. One person at 30% and one at 20% do not both cost 25%.