DISCUSS the accounting treatment of Idle time and overtime wages.

Accounting treatment of idle time wages & overtime wages in cost accounts: Normal idle time is treated as a part of the cost of production. Thus, in the case of direct workers, an allowance for normal idle time is built into the labour cost rates. In the case of indirect workers, normal idle time is spread over all the products or jobs through the process of absorption of factory overheads. Under Cost Accounting, the overtime premium is treated as follows: If overtime is resorted to at the desire of the customer, then the overtime premium may be charged to the job directly.If overtime is required to cope with general production program or for meeting urgent orders, the overtime premium should be treated as overhead cost of particular department or cost center which works overtime.Overtime worked on account of abnormal conditions should be charged to costing Profit & Loss Account.If overtime is worked in a department due to the fault of another department the overtime premium should be charged to the latter department.