Answer (B) is correct. An unfavorable direct labor efficiency variance indicates that actual hours exceeded standard hours. Too many hours may have been used because of inefficiency on the part of employees, excessive coffee breaks, machine down-time, inadequate materials, or materials of poor quality that required excessive rework. An unfavorable direct materials usage variance might be related to an unfavorable labor efficiency variance. Working on a greater quantity of direct materials may require more direct labor time.