An unfavorable efficiency variance for direct labor for a manufacturing company indicates that:

actual direct labor wage rate is higher than the standard direct labor wage rate.

the number of direct labor hours actually used in production is greater than the number of standard direct labor hours allowed for the actual amount of output.

the number of direct labor hours actually used in production is greater than the number of standard direct labor hours allowed for the budgeted amount of output in its static planning budget.

actual direct labor cost is greater than the standard direct labor cost allowed for the actual amount of output.