Requirements - 1. Compute the direct materials price and efficiency variances. 2. 3. 4. 5. 6. What factors can explain the variances identified in requirement 1? Could any other variances be affected? Was switching suppliers a good idea for Sporty Bikes? Explain why or why not. Should Michael Sweeney'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 Austen to understand the causes of a variance before she evaluates performance? Other than performance evaluation, what reasons are there for calculating variances? What future problems could result from Sporty Bikes' decision to buy a lower quality of titanium from the online marketplace? Print Done