Answer (C) is correct . An efficiency, or usage, variance for materials occurs when usage differs from the standard. Unfavorable variances occur when actual usage is greater than standard. Labor whose skill is commensurate with materials usage standards should achieve standard materials usage; that is, little or no variance should arise.
Answer (A) is incorrect because If materials do not meet specifications, more will be used and an unfavorable quantity (usage) variance will result.
Answer (B) is incorrect because Machinery that has not been maintained properly is more likely to ruin units of production and therefore require more materials to complete production.
Answer (D) is incorrect because Scheduling of substantial overtime can lead to reduced quality and the need for more material to produce units to replace those units of unacceptable quality.
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