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Costing doubt plz helpII

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(Querist)
21 April 2011 Is d formula for idle capacity cost = budgeted overheads / normal capacity of the plant.
plz help out
Thanx! !
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ca cs shriyans jain

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ca cs shriyans jain (Expert)
22 April 2011
Formula of IdleCapacity Variance:Following formula/equation is used forthe calculation offactory overhead idlecapacity variance:

[Budgeted allowancebased on actualhours worked* – (Actual hours worked× Standardoverhead rate)]*
(or)
Fixed expenses budgeted Variable expenses (actualhours worked ×  variableoverhead rate)
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