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Where you can charge IDLE COST? 1) Direct Labor Cost 2) Factory Overhead Cost 3) Other Operations Cost. Please answer.

Where you can charge IDLE COST?1) Direct Labor Cost2) Factory Overhead Cost3) Other Operations Cost. Please answer.

Cost Accounting
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Question added by Mohammad Iqbal Abubaker , Jahaca Pty Ltd - Accounts Administrator , Jahaca Pty Ltd - Accounts Administrator
Date Posted: 2016/03/19
Upvote (0) Views (8) Followers (3) Answers (3) Report Question
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Gayasuddin Mohammed
by Gayasuddin Mohammed , Advocate , Practicing Law before High Court at Hyderabad

I think option (2) Factory overhead cost is the answer. Thanks.

Dasarathi Rath
by Dasarathi Rath , Sr. Accountant , Al Luban Special Investment LLC

We charge idle cost for Indirect workers for normal idle time spread over all the products or jobs, through the process of absorption of factory overhead. The answer is 2.- factory overhead cost.

P A Cariappa Appaiah
by P A Cariappa Appaiah , back office executive , Inspire Hond

Factory overhead cost, is the answer.

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