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:

$1.$ 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?

$2.$ 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?

When you are finished, please email this to the owner of Cow Hopp, Miss Bessie. Be sure to provide a professional analysis of the results as well $($how are they doing? Where can they improve?$).$ They are hoping to hear from you by the deadline posted in Canvas.