Multiple choice

Directions: Choose the correct option for the given question.

Idle time x _____ gives the idle time variance.

  1. normal rate

  2. standard rate

  3. abnormal rate

  4. either (1) or (2)

  5. none of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Idle time variance is calculated by multiplying the actual idle hours by the standard hourly rate. This measures the cost impact of time lost due to inefficiencies or disruptions.

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