Van Buren Frames manufactures hardwood luxury picture frames. The company uses standard costs to prepare its flexible budget. For the companys the first quarter of 20x8, direct material and direct labor standards for one of their most popular frames were as follows: Materials: 1.5 board feet per unit; $4.00 per board foot Labor: 2.0 hours per unit; $18.00 per hour During the first quarter, Van Buren 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 board feet of materials and the direct materials efficiency variance was $2,000 F. Which of the following would be a logical explanation for this variance?

Multiple Choice

• The company paid a lower rate for labor than allowed by the standards.

• The company used fewer labor hours than allowed by the standards.

• The company used a lower quantity of materials than was allowed by the standards.

• The company paid a lower price for the materials than allowed by the standards.

• None of the answers is correct.