How should idle time be accounted for?
A)It should be recorded along with the reason for it,and charged to Factory Overhead.
B)It should be charged to the job from which the employee took a break.
C)It should be documented and the employee should not be paid for that time.
D)It should be allocated to the various manufacturing departments and the supervisors should decide how to handle it.

Question

Quizplus · Accepted Answer

Idle time should be recorded and charged to Factory Overhead, as it is a cost of production and should be accounted for in the overall cost of the product. The reason for the idle time should also be documented to identify any areas for improvement in the manufacturing process. Charging it to a specific job or department may not accurately reflect the true cost of the idle time. Employees should still be paid for their time, as long as they are available and ready to work.

How Should Idle Time Be Accounted For