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idle capacity ratio


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The ratio, sometimes expressed as a percentage, of the production capacity idle during a specified period to the capacity as expressed in the budget. Capacity can be measured in machine hours or labour hours and idle capacity is measured in the same way. The formula is:(budgeted hours – actual hours worked × 100)/budgeted hours.

(budgeted hours – actual hours worked × 100)/budgeted hours.

Subjects: Accounting.


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