Labour idle time - Characteristics

Q.  Which of the following statements are true about labour idle time?
- Published on 14 Sep 15

a. Labour idle time variance is not caused by non-availability of raw material
b. Labour idle time variance is measured as : Abnormal idle hours * Actual hourly rate
c. Labour idle time variance is always unfavorable or adverse
d. All of the above

ANSWER: Labour idle time variance is always unfavorable or adverse

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    Discussion

  • yash h pandya    -Posted on 22 Mar 19
    it is always considered as adverse/unfavourable because idle time means to pay for not work done due to some abnormal reasons e.g. power off ,machine breakdown etc...….so,it is always not in the favour of company.

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