(cick the icon to visw the standard and actual itormaton.) Read ine racuirensects Requirement 1, Compute the direct materiais price and effeienty variances. Leets begin by calculatiog the coet for the actual input at the beigeted ptice. Now compute the ptice and efficency variances foe drect materals. Label ench variance as lavorable (F) or untaverable (U). Requirement 2. What factors can explain the veriances identifid in tequirement 1? Could any other variances be alfected? The is due to the difforenoe between the standard price based on the provicus supplion and the actial price paid through the orline marketplace. The could be dun to soveral tacors including inexperienced workers, lower qusity product, and machine maifunctions. The variance could be affected if the lower quality ttaniim caused the woikers to use more tirre. Katharine Johnson is the omper of Crand Bikes, a company that produces high qualfy cross-courtry bicycles. Grand ekes particpates in a supply chain that conaists of supplere, manufacturens, and lighter than other metals and therofore increases the quality of the bioyde. Earler this yoar, Grand elkes hieed Mchael Gammaro, a recent graduate from Stale Universily, as purchasing maneger. Michaet believed that he could reduce costs it he purchased litanium from an online marketplace at a lowar price. (Click the icen fo vew the stancard and actual information) Read the resuirements. Requirement 2. What factors can explain the variances identifed in requirement 17 Could any cher variances be affected? The could be due to several factors including inexperienced workers, lower qualify product, and machine mallunctions. The variance could be asected it the lower qualify ctanium caused the workers to use more time. Requirement 3. Was switching suppliers a good idea for Grand Bikes? Explain why or why not. Switching suppliers is it important for Katharine Johnson to anderstand the causes of a variance before she evaluates performance? Select the two statements that answer why it is important for Katharine Johnson to understand the causes of a variance before she avalustes performance. manpgot Michanl boleved that ha could roduce costs it he purchased thanium from an onine matketilate at a lower frice. (IA jCick tho iton to wew the standard and act.jal infoemation ) Road the pesurnments Seiect the tex statemerts that anvwer why it is important for Kathaine simson to undertavd the cautes of a varance before the ovaluales pertormance. It is important for Johrisen to understand that ali favorabio matthal price variances are "good newi", becsuse ther are incraatieg preftes. Johnson should understand efficiency vatiantes may arise lor maty different reasans and sho neteds ts inow these reascins before evaluating performance. Purchabe of inferiot inputs. Johnson shouls understand efficiency varianses may arise for crily cne reason and whe needs to know that reason befire avaluating parfermance. Requirement 5 . Dther than performance evalualion, whyt reasons are there for calculating variances? B. Varinnbes are used to demand Higher quality materishs foen supofen at the same oost that Giand Baves pays now C. To use the variance inforiation to negotiate Iswer prices with buecliers. Requirement 6. Whyt future problems could resull from Grand Blees decision to buy a lower qualfy ct thanium from the orine marketelace? decreased tales in the future: now be selling ait their available titanlum to other manutacturers: has incresesed profits. D. Both A and B mataget. Mohnel believed that he could reduce costs it he purchased titaniun from an ocline marketplace at a formar price. EPZ (Clok the icon to wWw the ltandars and actual infortivation.) Read tha zacainemante Data table Requirements 1. Computa the deet matsilals pricen and wiflientcy virtances 2. What factors calt esplan the warances identfed in roqurement 17 Goult afy other vielances be affected? 3. Was tweshing weptiers a good lika tce Crand Bikes? Expian why ar why net. 4. Sheils Michael Garmaro's performance everuation be based solely on price varances? Should the production managerf evaluation be based selely on ieficiency vafances? Why is is inportant for Katharne Johnson to uhberstand the civses of a varimoe before tha eviluates Derfomance? Oater than perfomance evaluation, what reascris are there for calculatify 5. Otter than pet 6. What future problems could retult from Grand Blies' decison to buy a loaer qualy of teanum trom the onine markefpiace? marager. Michaet believed that he could recuce costs it he purchased thantet from an oritie marketelacn at a lower price. (Elick tho iobh to view tha etanders and actisat infermation.) Pead the pauirmment Requirement 1. Compule the difect materiais price and afficiency variances. Let's begin by calsulating the cost fer the actual ingut at the budgeted price. Now compute the price and efliciency vanances for di rect materials. Label each variance as tavorable (F) cr untavorable (U) Requirement 2. What factors can oxplain the variances identsed in tequirement 17 Could any other variances bo allected? The is due 10 the difference between the standard price based on the previcus supplers and the actual price paid theough the onlina markatplase. The could be due to several facters including inexperienced workers, lower quality product, and inachine malfunctons. The. vahance could be affectod it the lower qualify tianititi caused the warkers to ube more time. Requirement 3. Vias switching supplers a good idea for Grand Bikas? Explain why or why not Requirement 3. Was switching suppliers a good idea for Grand Bikes? Explain why or why not. Switching supplinis The good iden- The the cost of titanum was outweighed by the voriance pocognize the total impact of the lower qualty titanium becauser only is it important toe Katharine Johnson to understand the causes of a variance before she evaluates perfonmance? Select the tho statements that answer wty it is important for Katharine Johnson to understand the causes of a variance belore she evaluates pertomance. II is important for Johnson to understand that all favorable material price variances aro "good news", because they are increasing profis. Johnson should understend efficiency variances may arise for many dilerent reasons and she needs to know these teasons bofcee ovaluating parfermance. purchase of inferior inputs. Johnson should understand thficiency variances may arise for only one reason and sho noods to know that reason before evaluating performance- Tanager, Michael belleved that he could reduce costs it he purchased tianum from an onloe markethlace at a lower price (Click the ioon 10 wiew the standard and actuy informalion) Read the requirements. the lower-puality titanium, which led to the Select the two steiements that answer why it is imporiant for Katharine Johrach to understand the cavses of a variance betore she evaluates perfomance. It is important for Johnson to understand that al favonable materiat price valances are "good nows", because they are increasing profit Johnson thould unserstand efficioncy veriances may atise for mavy different reasons and she needs to inow these reascns before evaluating pertarmance purchase of inferior inputs, Pequirement 5. Ether than perfomance evaluation. What reasons are there for calculating variahces? 8. Warianoes are used to cemand higher quality malenals from supplers at the same cost that Garand B.hes pays now. C. To use the vananoe information to negotiate lower prices with euptiters. decreased sales in the fulure. now be seling all their avallable titanium to other manufacturers has increased profits D. Both A and B. aanager. Michael believed that he could reduco costs it he purchased tianium from an online marketplace at a lower peice (Click the kon to view the standerd and actuat information.). tead the requirements. Data table Requirements 1. Compute the drect materials price and effoincey variances. 2. What factors can explain the variances identified in requirement 17 Could any cener variances be alfected? 3. Was sot. 4. Should Michael Carmaro's performance evaluation be based soley on price varancest should the production managers evaluation te based solely on etsciency variasces? Why is it important for Katharne Johnson to 5. Ccher than performance evaluation, what reasons are there for calculating varlances? 6. What future problions could resuat from Grand Bikes' decsion to buy a lower quality of thanium from the celine markatplace