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Revision mock Q Idle Time Variance

AAdam11y ago
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?
KKyaw11y ago#1
Excess idle time Variance = (Expected idle time ~ Actual Idle Time) x Gross up Std Rate $ 315.79 (Adverse) = ( 6000 x 5% ~ 330) x $10/.95
John MoffatJohn MoffatTutor11y ago#2
kayo's answer is correct (even though he should not really be answering here - it is Ask the ACCA Tutor :-) )
KKyaw11y ago#3
I beg your pardon, Sir! I did not know that I can't answer here!
AAdam11y ago#4
Thnkx
John MoffatJohn MoffatTutor11y ago#5
No problem :-)
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