How to Calculate and Analyze Labor Idle Time Variance?
Time variance analysis is an integral portion of cost accounting study. There are numerous types and forms of time variance analysis, but here we are primarily going to highlight our Labor Idle Time Variance homework help for introductory details.
Obviously, while calculating these variances, it is important to take into consideration the constraining labor mix variance as well for a better insight and a more accurate approach.
What is Labor Idle Time Variance?
It is basically the overall cost of standby time during labor which was unable to result in a direct production utility. It only constitutes of direct labor costs. What are the causes for idle labor time?
Let’s check them out:
- Mechanical equipment malfunction.
- Industrial disputes and production hassles.
- Lack of absence of proper orders during production.
Our well-defined and illustrious Labor Idle Time Variance homework help services at myhomeworkhelp.com provide detailed causes for any particular case study involving idle labor time variance.
The most basic method to calculate this type of time variance, as shown in our Labor Idle Time Variance assignment help , is just consider the primary labor rate and the amount of idle time spent, then:
Idle Time Variance = No. of idle hours x Standard Labor Rate.
Moving on from here, you can also go further to calculate the labor rate variance as well as the labor efficiency variance. Those two details are often overlooked.
Even though the basic idea seems quite simple, case studies involving these forms of time variance can be difficult to analyze. Students often misunderstand figures and thus fail to accurately provide a detailed analysis. Let’s take a look at some common problems students face:
- The labor efficiency variance is often left out of calculations.
- The difference between actual and standard labor rates is neglected.
- Students fail to integrate different types of labor, viz. direct and indirect, into a common stream.
- Provisionary cases associated with these case studies are often too complicated.
These factors have confused and disrupted many students, and our Labor Idle Time Variance assignment help services at myhomeworkhelp.com has been a clear choice for them.
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Cost accounting has a wide range of topics to deal with, so our team of experts on this subject is specialized in cost accounting analysis to improve the quality of your assignments. Our aim is to improve interactions with our clients in order to establish long term relationships for future Labor Idle Time Variance assignment help services.