in chapter 3 there was no talk about the topic,idle time..i also had the lecture…can you help me on this………..
idletime means: Idle hours are not productive there are costs by machine breakdown,lack of material availability,power failure etc……Idle hours are not good for the company,therefore company always try to reduce the number of idle hours.In calculating individual efficiency variance idle hours should be deducted from total hours worked in order to derive active hours.(Standard costing)
Idle time means
whenever there will be stockout there will be idle time.
Idle time means when there is a shortage of anything like power breakdown, stockout material or anything which may cause stop production and the labour will take they money of that time even there is no production it is called idle time.
employee may get idle time when there is a machine breakout, inventory stock out, any f this kind, which are not in control of employee. company have to pay the employee for this idle time. when it comes to accounting, this idle time is not taken to direct cost of product.
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