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the owner of Better Bikes, a company that produces high quality cross-bicycles Bikus participates in a supply chain that consists of suppliersmanufacture and purchased titanium from suppliers in the supply chain uses titanium for the bicycle frames bocause is stronger and lighter other and therefore increases the quality the Michael Monachino, a Stato University, as purchasing manager Michael beloved that he could reduce cost titaniurn online marketplace at

ON P7:38 (similar to) Kaameron the time they die mees aan het comforter den anden FuelBespanto per pohan nama Dermatologie et and the home Read the Requirement Compte de condency bety at the the budgeted per Co Direct manage ces high quality cross-country bicycles. Better Bikes participates in a supply chain that consi in the ger ent gi x uld i Data Table Better Bikes established the following standards based upon the company's experience with their previous suppliers. The standards are as follows: iance price Cost of titanium $24 per pound 8 lbs. d prio Titanium used per bicycle Actual results for the first month using the online supplier of titanium are as follows: Bicycles produced 300 Titanium purchased 3,400 lb for $71,400 Titanium used in production 2,900 lb. Print Done Clear All i Requirements 1. Compute the direct materials price and efficiency variances. 2. What factors can explain the variances identified in requirement 1? Could any other variances be affected? 3. Was switching suppliers a good idea for Better Bikes? Explain why or why not. 4. Should Michael Monachino's performance evaluation be based solely on price variances? Should the production manager's evaluation be based solely on efficiency variances? Why is it important for Katharine Preston to understand the causes of a variance before she evaluates performance? 5. Other than performance evaluation, what reasons are there for calculating variances? 6. What future problems could result from Better Bikes' decision to buy a lower quality of titanium from the online marketplace

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