measure the idle time variance, Cost Accounting

PH plc operates a modern factory that changes chemicals into fertilizer. Due to the the demand for  its product  is  seasonal,  the  company expects  that  there will be an average  level of  idle time equal to 20% of hours paid. This is incorporated into the companyís standard costs, and  the  standard  labour  rate  of  Rs.6.00  per  hour  paid  is  then  adjusted  accordingly.  Any difference among  the expected and  the original amount of  idle  time  is  reported as  the  ëidle time varianceí and is valued adjusted wage rate. 

1522_55.png

(a)  Measure the idle time variance and the efficiency variance for April.

(b)  (i) Using the data provided and your answer to (a) above as appropriate, prepare a percentage variance chart that determine the trend of these variances. (Use graph paper and show both variances on the similar chart.)

(c)  Explain shortly the factors that should be considered before deciding to investigate a variance. 

 

 

Posted Date: 3/18/2013 6:29:22 AM | Location : United States







Related Discussions:- measure the idle time variance, Assignment Help, Ask Question on measure the idle time variance, Get Answer, Expert's Help, measure the idle time variance Discussions

Write discussion on measure the idle time variance
Your posts are moderated
Related Questions
Marvin's Motors Company (MMC) manufactures outboard motors for use on small to medium sized boats. MMC produces three models: the Standard, the Deluxe and the Performance. The comp

behavioral aspect of standard costing

Workmen shoes accumulated the following production and cost data for the past 5 months. i)  Using the high/low method calculate the variable cost per unit and the fixed cos

Question Hornsby Manufacturing has four categories of overheads. The four categories and the expected overhead costs for each category for next year are as follows:


METHODS OF COSTING : 1. Job costing :  Job costing is the essential costing technique appropriate to those industries somewhere the work consist of separate contracts, or batch


What are 'potential' ordinary shares?  In your answer provide three examples to support your explanation.  Briefly outline the process (steps) to determine whether 'potential' ordi

These are losses on account of uncollectable debts. While the amount due from debtors is irrecoverable, it is termed as bad debts. Bad debts, being loss are closed through transfer

Vincent Ltd operates solely in Western Australia and the chief operating decision maker has identified five operating segments: Mining, Insurance, Retailing, Manufacturing and Tran