Congratulations! Your work on the Air$-$Accountant shoes was so

helpful that the company was bought out by Nike Inc and you

made enough money you never have to work again! But...what

fun would that be$?$ So you started your own accounting

consulting company called You Can Account On Us$.$ Recently,

you were hired by a company named Cow Hopp to help analyze

budget variances. Information for Cow Hopp's Commemorative

Milk Glasses is below:

Additional data for the Milk Glasses is as follows:

You want to make a good impression on the folks at Cow Hopp

so please produce a report showing the Quantity and Price

variances for DM$,$ DL$,$ and Var MOH. In addition, please

compute the volume and spending variances for Fixed MOH.

Cow Hopp is considering a few changes. Please rerun your

variances with the following changes:

Management has heard that material costs are starting to

run higher. As a result, it has chosen to find a new supplier.

It projects that with the new supplier, it could have

purchased the clay for $$2\mathrm{.}00$ per pound but it would have

used $218,000$ pounds to produce the same $118,000$ units.

Should management switch to the new supplier?

Management has also heard it is taking longer than

expected to make these glasses. As a result, it plans to use

labor that is more skilled. The new influx of skilled labor

will take $264,000$ hours to make the $118,000$ glasses and

will cost $$3,498,000.$ Should management make this

change?