Q.What is Overtime? Explain how the overtime premium is treated in cost accounts in different situations.

Time paid for but yielding no output = Idle time.

Idle time is that portion of the paid attendance time during which the worker remains idle and no production is obtained, yet the employer still pays wages.

• Causes include machine breakdown, power failure, waiting for materials/instructions (normal/abnormal idle time). …

Work done beyond normal hours is overtime — option (a).

In this CHSE Odisha +2 Cost Accounting topic, overtime is the time a worker puts in over and above the normal working hours and is generally paid at a premium (e.g. double the normal rate). This is distinct from idle time (paid time durin …

Paid time with no output is idle time — option (a).

Idle time is the difference between the time for which a worker is paid and the time actually spent on productive work. The worker is on the pay-roll and is paid, but no output results — for example, time lost through machine breakdown, power failure, waiting for material or instructions.

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The underlined "overhead" is wrong — the difference between gate (time-card) time and job-card time is idle time.

• Time card / gate card time = total attendance time inside the factory (from entry to exit).
• Job card time = time actually booked against productive jobs.
• The shortfall (attendance time – job time) is time for which the worker is paid but no production is recorded — e.g. waiting for materials, machine breakdown, power failure. …