An unfavorable direct materials efficiency variance indicates that: a) actual usage of material exceeds the standard material allowed for output. b) standard material allowed for output exceeds the actual usage of material. c) actual material price exceeds standard price. d) standard material price exceeds actual price.

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Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.