Test: Exam 2 Question 23 of 36 This test: 100 point(s) possible This question: 4 point(s) possible Submit test Katharine Preston is the owner of Better Bikes, a company that produces high quality cross-country bicycles. Better Bikes participates in a supply chain that consists of suppliers, manufacturers, distributors, and elite bicycle shops. For several years Better Bikes has purchased titanium from suppliers in the supply chain. Better 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, Better Bikes hired Michael LaChut, 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. O (Click the icon to view the standard and actual informa X Read the requirements. Data table O Better Bikes established the following standards based upon the company's experience with their previous suppliers. The standards are Requirement 1. Compute the direct materials price and eff as follows: Let's begin by calculating the cost for the actual input at the Cost of titanium $17 per pound Actual input X Titanium used per bicycle 8 lbs. O Direct materials (purchases) X Actual results for the first month using the online supplier of titanium Direct materials (usage) X are as follows: Bicycles produced 700 Next determine the formula and calculate the cost for the fl Titanium purchased 8,100 lb. for $129,600 Titanium used in production 6,600 lb. Direct materials Now compute the price and efficiency variances for direct n Print Done Next= Test: Exam 2