Labour cost rate per productive hour, normal idle time 20%, basic rate ₹60/hr, equals:
A₹70
B₹72
C₹75
D₹80
Answer & Solution
Correct answer: C. ₹75
1. With 20% normal idle time, only 80% of paid hours are productive.
2. Labour cost rate per productive hour = basic rate / productive fraction.
3. Productive fraction = 1 − 0.20 = 0.80.
4. Rate = 60 / 0.80 = ₹75 per productive hour.
_Source: ICAI BoS Inter Paper 3, Ch 3 "Employee Cost", §3.4.1 Illus 2_
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