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Over time is ________.

A. actual hours being more than normal time

B. actual hours being more than standard time

C. standard hours being more than actual hours

D. actual hours being less than standard time

Answer: Option A

Solution (By Examveda Team)

Over time is actual hours being more than normal time. Overtime is the amount of time someone works beyond normal working hours.

This Question Belongs to Commerce >> Costing

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Comments (2)

  1. Remesh A
    Remesh A:
    4 weeks ago

    The correct option is ✅ A. actual hours being more than normal time.
    Explanation
    In cost accounting and labor management, overtime is specifically defined as the period of work performed by an employee that exceeds their normal working hours.
    Filo
    Filo
    +1
    Normal Time: This refers to the regular, established work schedule (e.g., 8 hours a day or 40–48 hours a week as per local labor laws like the Factories Act).
    Calculation: When actual hours worked exceed this "normal" threshold, the excess hours are classified as overtime and are typically compensated at a higher rate, such as double the regular wage.
    ddvscm.in
    ddvscm.in
    +3
    Why other options are incorrect
    ❌ B. actual hours being more than standard time: In standard costing, if actual hours are more than standard hours (the time allowed to produce a specific quantity of output), it results in an Adverse Labour Efficiency Variance, indicating inefficiency rather than "overtime" in a legal or payroll sense.
    ❌ C. standard hours being more than actual hours: This describes a Favorable Labour Efficiency Variance, meaning workers were more efficient than expected by completing tasks in less time than the standard allowed.
    ❌ D. actual hours being less than standard time: Similar to option C, this indicates high efficiency or time saved against a benchmark, not extra hours worked beyond a regular shift.

  2. Ravi Sharma
    Ravi Sharma:
    5 years ago

    Hello Sir/Mam,

    Why answer to this option cannot be option 2
    "actual hours being more than standard time"

    the standard time is 8 hrs and i am working 9 hrs means 1 hour is Overtime.

    what is diff in standard and normal time,
    "Normal time we can say avg. But standard time is fixed one, for eg: you have to work for 6hrs its a standard one.

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