Mile High Cycles.pdf
I have answered questions 2 and 3. See attached. I only need you to answer question 4. Please write 300 words or more.
Answer the following questions:
2. Using the approach discussed in Week 3, Presentation 3, develop a 2004 flexible budget, and compute the flexible – actual variances.
3. Determine direct cost variances (six for Frame; four each for Wheel and Final) and two overhead variances.
4. Should Bob Moyer be concerned about Mile High Cycles’ performance? How significant are these variances?
What is causing these variances? Do you see any patterns or relationships among the variances that suggest possible causes?
Where should Bob Moyer direct his attention? Why? What should he do?