# Idle Time
## Definition
Idle Time = Time for which payment is made but no production occurs.
> Arises only under a time-based payment system (not under piece-rate).
Formula:
> Idle Time = Time on Time Card − Time booked on Job Card
> Idle Time = Normal Idle Time + Abnormal Idle Time
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## Normal Idle Time (Unavoidable)
Loss of time that cannot be avoided in the normal course of operations.
Causes:
1. Time lost travelling from factory gate to workstation
2. Machine set-up time
3. Normal fatigue
Sub-classification:
| Type | Examples |
|---|---|
| Normal & Controllable | Machine breakdown, waiting for work / tools / materials |
| Normal & Uncontrollable | Set-up time, interval between two jobs, normal fatigue |
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## Abnormal Idle Time (Avoidable)
Loss of time that should not occur and can be avoided with proper management.
Causes:
1. Power failure, machine breakdown
2. Non-availability of raw materials
3. Strikes, lockouts
Sub-classification:
| Type | Examples |
|---|---|
| Abnormal & Controllable | Time that productive use was possible if management had been alert |
| Abnormal & Uncontrollable | Time lost to abnormal causes beyond management control |
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## Accounting Treatment
| Type of Idle Time | Treatment in Cost Accounts |
|---|---|
| Normal & Controllable | Charged to Overhead Cost |
| Normal & Uncontrollable | Charged to the job by inflating the wage rate per unit |
| Abnormal Idle Time | Charged to Costing Profit & Loss Account |