Further Classification of Labor Costs: Learning Objective of the Article: Properly classify labor costs associated with idle time, overtime and fringe benefits. Idle time, overtime, and fringe benefits associated with direct labor workers pose particular problems in accounting for labor costs. Are these costs
Idle time is the time that is related to waiting, or when a piece of equipment is not being used but could be. Idle time could also be related to computing, and in that case refers to processing time.