Idle time in F.O.H absorption — OpenTuition Forums

ASalawi sayed10y ago

Hello Sir, If there is there is an Idle time in assembly hours why should we don't consider while absorping the fixed overhead like in Ewdard ltd q in BPP mock exam 2 , Thanks,

John MoffatTutor10y ago#1

We assume always that we only incur overheads during hours actually worked. It is only with labour that we might be paying them for more hours than they work (because of idle time), but again we assume that while they are idle then the company is not incurring overheads.

ASalawi sayed10y ago#2

Thanks a lot Mr John,

John MoffatTutor10y ago#3

You are welcome :-)

Sign into reply to this topic.