Lukey Products Has an Unfavorable Materials Usage Variance

Multiple Choice

Lukey Products has an unfavorable materials usage variance. Which of the following would be the most likely reason for this variance?

A) The company under budgeted the quantity of material to be used for each unit.
B) The company purchased material at a price for less than what was expected.
C) The company budgeted for a lower sales volume than what actually occurred.
D) The company did not use up all the material that had been purchased.