Katherine Rouse is the owner of Action Bikes, a company that produces high quality cross-country bicycles.

Using the browser's print will lead to an undesirable print-out. Use the Print item from the "Question Help" menu to get a better print-out. 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 Action Bikes? Explain why or why not. 4. Should Michael Scott'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 Rouse 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 Action Bikes' decision to buy a lower quality of titanium from the online marketplace? sing the browser's print will lead to an undesirable print-out. Use the Print item from the Question Help" menu to get a better print-out. Adion Bikes ostationed the following standards based upon the company's experience with their previous suppliers. The standards are as follows: Cost of titanium $19 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 700 Titanium purchased 7,100 lb. for $120.700 Using the browser's print will lead to an undesirable print-out. Use the Print item from the "Question Help" menu to get a better print-out. 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 Action Bikes? Explain why or why not. 4. Should Michael Scott'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 Rouse 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 Action Bikes' decision to buy a lower quality of titanium from the online marketplace? sing the browser's print will lead to an undesirable print-out. Use the Print item from the Question Help" menu to get a better print-out. Adion Bikes ostationed the following standards based upon the company's experience with their previous suppliers. The standards are as follows: Cost of titanium $19 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 700 Titanium purchased 7,100 lb. for $120.700