Katharine Cleary is the owner of Better Bikes, a company that produces high quality cross country bicycles. Better Bikes participates in a supply chain that consists of suppliers, manufacturers, distributors, and elite bicycle shops. For several years Better Bikes has purchased fitarium from suppliers in the supply chain. Better Bikes uses titancum for the bicycle frames because it is stronger and lighter than other metals and therefore increases the quality of the bicycle. Earlier this year, Better Bikes hired Michael Samson, a recent graduate from State University, as purchasing manager. Michael believed that he could reduce costs if he purchased titanum from an online marketplace at a lower price. (Click the icon to view the standard and actual information.) Read the ceguirements. Requirement 1. Compute the direct materials price and efficiency variances. I avo hosin twu calculatina the cost for the actual input at the budgeted price. Data table 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 Samson'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 Cleary 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