# Idle Time

This topic contains 3 replies, has 2 voices, and was last updated by  John Moffat 10 months, 2 weeks ago.

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• Grace
Participant

Dear John Sir,
Sorry another question again:
Prodt budgeted 8200 u , each unit needs 6 hs to make. Labour is paid \$15 per h. the idle time represents 10% of the total time paid. What is the total budgeted labour cost?
The given answer in F2 mock exam is 820000. I can’t get it.
Idle time=paid hours-worked hours right? How do we know the worked times ?

John Moffat
Keymaster

For every 100 hours paid, 10% are idle – so 10 hours are idle and 90 hours are worked.
So for every 90 hours worked, they pay for 100 hours.

The hours budgeted to work are 8,200 x 6 = 49,200

So the hours budgeted to pay are 49,200 x 100/90.

So the total budgeted cost is 49200 x 100/90 x \$15 = \$820,000

Grace
Participant

got it! Thank you sir !:)

John Moffat
Keymaster

You are welcome

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