This statistic captures the amount of money that is paid to Productives for every hour that is worked productively.
The
amount of money that you pay your Productives 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 Productives
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 (or Diverted Time) is shown as a Variable Expense.
