Katharine Stanloy 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. manufecturers, distributors, and elte bioyde shops. For several yoars Best Bikes has purchased titarium from supplers in the supply chain. Best Bikes uses titanium for the bicyele frames because a is stronger and lighter than other metals and therefore increases the qualiy of the bicycle. Earlier this year, Best Bikes hired Michael Scott, a rocent graduate from State University, at purchasing manager. Mishabl believed that he could reduce costs if he purchased Etanium from an online marketplace at a lower price. HI (Cick the ioon to vew the standard and actual information.). Requirements Data table 1. Compute the direct materials price and etiliency variances. 2. What factors can explain the variances identfied in requirement 1 ? Could any other variances be affected? 3. Was switching suppliers a good idea for Best Bikes? Explain why or why not. 4. Should Michael Scott's performance evaluation be besed solely on price variances? Should the production manager's evaluation be based solely on efficlency variances? Why is it important for Katharine Stanley to understand the causes of a variance before she evaluates performance? 5. Other than performance evalustion, what ressons are there for calculating variances? 6. What fusure probloms could result from Best Bives' decision to buy a lower qualty of titanium from the online marketplace