Question

I want it fast
If Idle Time is 500 Hours and Standard Rate
is Rs 8 then Idle Variance will be
Options
O Rs 4000 Averse
Rs 4000 Favourable
Rs. 2000 adverse
O Rs 2000 Favourable​

Answer 1

Answer:

2000 favourable is correct ans

Answer 2

If Idle Time is 500 Hours and Standard Rate is Rs 8 then Idle Variance will be Rs. 4000 Adverse.

Given:

Idle time = 500 hours

Standard rate = Rs 8

To find:

Idle variance = ?

Solution:

Idle Variance:

• It is the quantity by which the production usage finishes below the normal or expected production level, multiplied by rate of overhead application.
• Idle Variance tends to show adverse impacts on the profits of company as labors are being paid without any production, therefore Idle Variance is Adverse.

Formula to be used:

Idle Variance = Idle time × Standard rate

Idle Variance = 500 × 8

Idle Variance = 4000 Adverse.

Therefore, if Idle Time is 500 Hours and Standard Rate is Rs 8 then Idle Variance will be Rs. 4000 Adverse.