Y lc produces widgets.
Each widget takes 0.5 hrs to make.Std rte of pay $10/hr. Idle time expected 5% of hrs paid
They actually produce 10,800 units. They $50,000 for 6000 hrs, of which 330 hrs are idle.
Calculates excess idle time variance?
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PMRevision mock Q Idle Time Variance
11y ago#1The actual idle time is 330 hours; the standard idle time is 5% x 6000 hours = 300 hours.
so the excess idle is 30 hours.
The standard cost per working hour is 10/0.95 = $10.53.
So the excess idle time variance is 30 x $10.53 = $316
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