The formula to compute direct labor time variance is:
A) actual costs - standard costs.
B) actual costs + standard costs.
C) (actual hours × standard rate) - standard costs.
D) actual costs - (actual hours × standard rate).

Question

Quizplus · Accepted Answer

Direct labor time variance is calculated by comparing the actual hours worked at the standard rate to the standard costs, which is represented by the formula (actual hours × standard rate) - standard costs.

The Formula to Compute Direct Labor Time Variance Is