Answer (D) is correct . An unfavorable materials quantity or usage (efficiency) variance can be caused by a number of factors, including waste, shrinkage, theft, poor performance by production workers, nonskilled workers, or the purchase of below-standard-quality materials by the purchasing department. Changes in product design can also affect the quantity of materials used. Sales volume of the product should not be a contributing factor to a materials efficiency variance.
Answer (A) is incorrect because Worker performance is a possible cause of a materials efficiency variance.
Answer (B) is incorrect because Purchasing department actions are possible causes of a materials efficiency variance.
Answer (C) is incorrect because Product design is a possible cause of a materials efficiency variance.
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