Katharine Johnson is the owner of Best Bikes, a company that produces high-quality cross-country bicycles. Best Bikes participates in a supply chain that consists of suppliers, manufacturers, distributors, and elite bicycle shops. For several years Best Bikes has purchased titanium from suppliers in the supply chain. Best Bikes uses titanium for the bicycle frames because it is stronger and lighter than other metals and therefore increases the quality of the bicycle. Earlier this year, Best Bikes hired Michael Benthield, a recent graduate from State University, as purchasing manager Michael believed that he could reduce costs if he purchased titanium from an online marketplace at a lower price Best Bikes established the following standards based upon the company's experience with previous suppliers and its current well-trained, experienced production crews. The standards are as follows: Cost of titanium $22.5 per pound Titanium used per bicycle 8 lbs. Actual results for the first month using the online supplier of titanium are as follows: Bicycles produced 800 Titanium purchased 7.470 lb. for $153,882 Titanium used in production 7.200 lb. Titanium used in production 7.200 lb The production manager does not report having any machine malfunctions or tabor issues. Required 1. Compute the direct materials price and efficiency variances Indicate the variances are favorable (F) or unfavorable (U). For example 100 For 1000 2. What factor most likely explains the ethiciency variances identified in requirement 17 3. Could any other variances be affected? 4. What was the expected total financial impact of purchasing and using all lower quality titanium assuming the quantity of materials used in production is relatively the same as above? Indicate the variance is favorable (F) o unfavorable (U). For example, 100 For 100 U. 5. Was switching suppliers a good idea? Explain why or why not