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Hello Tutor. Hope you are doing well. May I know how Idle Time is a measure of efficiency
The efficiency variance is always calculated by comparing the actual working hours with the standard working hours for the actual production.
So standard hours are the standard hours worked (after idle time).
If we are told the standard rate of pay then we need to calculate the standard cost per working hour to use for the calculation of the efficiency variances.This is explained in the free lectures on idle time variances.
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