Should idle time be considered when calculating labour efficiency variance?
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Labour variance and idle time
Yes, in the sense that the 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.
I explain how in my free lectures on idle time variances.
Thank you so much! I would really like to express my gratitude toward open tuition and your help.
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