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

A) Actual Costs + (Actual Hours × Standard Rate)
B) Actual Costs - Standard Costs
C) (Actual Hours × Standard Rate) - Standard Costs
D) Actual Costs - (Actual Hours × Standard Rate)

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the standard cost, indicating how much the actual labor rate deviates from the expected standard.

Standard Costs

The predetermined costs associated with manufacturing a product or providing a service, used for budgetary and performance evaluation purposes.