The formula to the compute direct labor time variance is to calculate the difference between

a. (actual hours × standard rate) – standard costs
b. actual costs + standard costs
c. actual costs – (actual hours × standard rate)
d. actual costs – standard costs

The correct answer is A.

Explanation:

The general formula is:

Direct labor efficiency (time) variance= ( Actual Quantity - Standard Quantity)*standard rate

Note that none of the formulas provided matches the one I give you. But, with a small difference in the information, it can be adapted.

Direct labor efficiency (time) variance= Actual Quantity* Standard Rate - SQ* Standard Rate

If we are not provided with the Standard Quantity (SQ), but the total standard cost the formula is:

Direct labor efficiency (time) variance= (Actual Quantity* Standard Rate) - Standard cost

Therefore, the correct answer is A.

answer utilities; more money you have to pay out ; )