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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 ,
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.
Thanks a lot Mr John,
You are welcome 🙂