- This topic has 1 reply, 2 voices, and was last updated 2 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
If the idle time variance is favorable do we still cost it at the standard cost per working hour? Also is labour still paid for any idle time? Just watched the advanced idle time variances lecture and im a bit confused as to why we incorporated the idle time into the cost per hour worked?
Labour is paid for idle time, and so the cost of each working hour is higher because they are paying for more hours than are actually worked.
And yes, if the variance is favourable we still cost at the standard cost per working hour (because it means there are more hours being worked than they expected to be worked for the hours being paid for).
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.