Standby

Standby refers to the period during which equipment is assigned to a job and available for work, but is not put into operation until needed.  Only the fixed Ownership costs of Depreciation, CFC, and Overhead costs should be accrued for every hour the equipment is on standby.  Overhaul and Total Hourly Operating Costs are not accrued during standby time.  Standby is normally limited to eight hours per 24-hour period, and accrual of standby funds normally begins after the equipment is idle for 16 hours in a 24-hour period.