What is LABOR IDLE TIME VARIANCE?

The difference between the budgeted work hours and the actual idle paid hours. For example, if employees have an 8,000-hours budget making products, but only work 7,800 hours, then 200 hours is idle time. Calculating further by multiplying idle time by wage rate gives idle time costs. As an example, wage rate of $10/hour calcs to $2,000 cost (200 hours x $10/hour). Also refer to direct labor efficiency variance.

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