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Y Plc produces widgets. Each widget should take 0.5hours to make. The standard rate of pay is $10 per hour. Idle time is expected to be 5% of hours paid. They actually produce 10,800units. They pay $50,000 for 6,000hours, of which 330 hours are ideal.
What is the excess idel time variance.I cannot figure out how the answer was gotten as $316 adverse.
Have you both watched the free lecture on advanced idle time variances? (The mock exam is part of a complete free course – our lectures cover everything needed for F5 and it would be silly just to attempt the test on its own.)
The standard idle time is 5% x 6,000 = 300 hours, so there are 30 hours of excess idle time.
The standard cost per working hour is 100/95 x $10 = $10.526.
Therefore the variance is 30 x $10.526 = $316 adverse
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