This statistic captures the amount of money that is paid to Technicians for every hour that is worked productively.
The amount of money that you pay your Technician per hour is divided into three sections: Hours Attended, Hours Worked Productively and Idle Time.
Hours attended simply represents the number of hours that the Technicians have been clocked in and available to work, these hours are simply divided between Hours Worked Productively and Idle Time.
Example:
A) Value of Hours Attended = R6,290 B) Idle Time = R320 C) Labour Cost of Sales = R5,970 (A - B)
Discussion:
This example demonstrates that the cost of labour for the hours that have been sold can only be the hours spent working productively, and therefore Idle Time is shown as a Variable Expense.
