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Labour variance and idle time

DHDany Harris5y ago
Should idle time be considered when calculating labour efficiency variance?
John MoffatJohn MoffatTutor5y ago#1
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.
DHDany Harris5y ago#2
Thank you so much! I would really like to express my gratitude toward open tuition and your help.
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