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hi sir below is the question from your mock
each widget take 0.5 hrs t0 make , stnd rate of pay is $10 per hour . idle time is expected to be 5% of hours paid . they actually produce 10800 units they pay $50000 for 6000 hrs of which 330 hrs are idle time .
what is the excess idle time variance and labour efficiency variance .please reply sir , this will be most probably my last post before f5 exam and thanks aloot fr your hellp and support . pray for us !
Actual idle time = 330 hours.
Standard idle time = 300 hours.
So extra 30 hours idle.
Cost out at the standard cost per hour of work, which is 10/0.95 = 10.53
30 x 10.53 = 315Actual hours worked = 6000 – 330 = 5670
Std hours for actual production = (10800 x 0.5) = 5400So efficiency variance = (5670 – 5400) x 10.53 = 2843
Good luck tomorrow 🙂
sir , i didnt get how u calculatd stnd cost per hour of work .
can u make it clear ?
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