ECONOMICS

Detailed explanation-1: -Cost of idle time arising due to non availability of raw material is charged to costing profit and loss account. The cost of idle facilities for reasons such as trade depression, shortage of demand, etc. should be written off to Costing Profit and Loss Account.

Detailed explanation-2: -Explanation: Non-availability of raw materials is an unavoidable loss. In such a case, the workers are paid the same wage. This is known as idle time.

Detailed explanation-3: -Cost of normal idle time should be charged to cost of production simply by inflating the hourly rate of wages, e.g. if idle time is considered as 10% of total labour hours and wages are paid for 8 hours Rs. 288, Cost of labout p.h. in that case will be = Rs. 288/7.2 hrs = Rs. 40 per hour.

Detailed explanation-4: -Unplanned idle time, also known as abnormal idle time, arises from things like a lack of raw materials, waiting for other machines to complete their processes, and micro stops (which occur when a machine stops working for a short period of time due to a problem).

Detailed explanation-5: -Costs of idle facilities or idle capacity means costs such as maintenance, repair, housing, rent, and other related costs; e.g., property taxes, insurance, and depreciation.