Katharine Johnson

Johnson is the owner of Best

Best Bikes, a company that produces high qualitycross-country bicycles. Best

Best Bikes participates in a supply chain that consists ofsuppliers, manufacturers,distributors, and elite bicycle shops. For several years Best

Best Bikes has purchased titanium from suppliers in the supply chain. Best

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 thisyear, Best

Best Bikes hired Michael Bentfield

Bentfield, a recent graduate from StateUniversity, as purchasing manager. Michael believed that he could reduce costs if he purchased titanium from an online marketplace at a lower price.

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 Benteld, 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. a (Click the icon to view the standard and actual information.) Read the muirements. Requirement 1. Compute the direct materials price and efciency variances. Let's begin by calculating the cost for the actual input at the budgeted price. Actual input x Budgeted price Cost Direct materials (purchases) x Direct materials (usage) x I I Best Bikes established the following standards based upon the companY's experience with their previous suppliers. The standards are as follows: Cost of titanium $18 per pound Titanium used per bicycle 8 lbs. Actual results for the rst month using the online supplier of titanium are as follows: Bicycles produced 400 Titanium purchased 5,200 lb. for $88,400 Titanium used in production 4,700 lb