reduce costs if he purchased titanium from an online marketplace at a lower price. (Click the icon to view the standard and actual information.) Read the Requirement 1. Compute the direct materials price and efficiency variances. Let's begin by calculating the cost for the actual input at the budgeted price. Sporty Bikes established the following standards based upon the company's experience with their previous suppliers. The standards are as follows: Actual results for the first month using the online supplier of titanium are as follows: 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 Sporty Bikes? Explain why or why not. 4. Should Michael Gammaro'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 Preston 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 Sporty Bikes' decision to buy a lower quality of titanium from the online marketplace