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.