[Roxanne]

Can someone explain to me how to unsubscribe from these forums? I’ve been trying to for the longest.

[Roxanne]

Is the opportunity cost equivalent to the lost contribution?

[Roxanne]

Thank you very much!

[Roxanne]

Thank you!

[Roxanne]

The issue I had this with is the question called Chaff Co. from the June 2008 past paper. The question states that labour is normally paid $18 per hour. Idle time is expected to be 10% of hours paid and is not reflected in the $18 per hour.

Why is 100/90 *$18 used in this case for the labour efficiency variance and idle time variance and not 1.10%*$18?

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