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Q) Y plc produces widgets. Each widget should take 0.5 hours to make. The standard rate of pay is $10 per hour. Idle time is expected to be 5% of hours paid. They acytually produce 10,800 units. They pay $50,000 for 6,000 hours, of which 330 hours are idle. What is the excess idle time variance?
Would appreciate your help in advance.
Standard idle time = 5% x 6,000 = 300 hours.
Therefore the excess idle time is 330 – 300 = 30 hours.
The cost per working hour = 10 / 0.95 = $10.53
There the idle time variance = 30 x $10.53 = $315.9 (adverse)
The free lecture on excess idle time variances will help you.
Standard idle time = 5% x 6,000 = 300 hours.
Therefore the excess idle time is 330 – 300 = 30 hours.
The cost per working hour = 10 / 0.95 = $10.53
There the idle time variance = 30 x $10.53 = $315.9 (adverse)
The free lecture on excess idle time variances will help you.
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