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. 


(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
A company has an authorized share capital of 250 million divided into 1,500,000 ordinary shares of sh.100 each and 1,000,000 preference shares of sh.100 each. 1,000,000 ordinary sh

compare tradition costing and activity costing methods of overheads abpsrption based on production units,labour hourd and machine hours

how can a poorly controlled budget cause problesm for a business?

CMM is an internationally recognized standard for calculating the maturity of an organization's software development processes and has become the primary benchmark multinational co

Occurrence of Overhead Variances Overhead variances arise mainly because of the conventions of the overheads absorption process. The overhead absorption rates employed in this

What conclusion can you draw when comparing the total landed or delivered cost to the original purchase cost? What does this suggest about the importance of supply chain managem

Consider as Illustration. Profit and loss account of TIL demonstrates, that, operations have given gross addition of Rs. 360 million to funds throughout the period. These funds sho

1. Why does rent control result in a shortage of rental units. 2. How does price elasticity of demand affect how much of a tax is passed on to the consumer and how much is absor