Mile High Cycles Write-Up. Question 4 ONLY (at least 300 words).

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?