Faas Marine Stores Company Manufactures Decorative Fittings for Luxury Yachts

Faas Marine Stores Company manufactures decorative fittings for luxury yachts, which require highly skilled labor, and special metallic materials. Faas uses standard costs to prepare its flexible budget. For the first quarter of 2014, direct material and direct labor standards for one of their popular products were as follows: Materials: 1.5 pounds per unit; $4.00 per pound
Labor: 2.0 hours per unit; $18.00 per hour
During the first quarter, Faas produced 5,000 units of this product. At the end of the quarter, an examination of the materials records showed that the company used 7,000 pounds of materials. The direct materials efficiency variance was $2,000 F. Which of the following would be a logical explanation for this variance?

A) The company used fewer labor hours than allowed by the standards.
B) The company paid a lower rate for labor than allowed by the standards.
C) The company used a lower quantity of materials than was allowed by the standards.
D) The company paid a lower price for the materials than allowed by the standards.