Big Bobs Burgers is justifiably famous for its whopping 1-pound hamburger made with fresh ground beef and

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Big Bob’s Burgers is justifiably famous for its whopping 1-pound hamburger made with fresh ground beef and cooked to order. Together with a side of “all you can eat” country style French fries, one of Big Bob’s hamburgers makes for a very satisfying meal. On an average day, Big Bob serves 200 1-pound hamburgers. Big Bob budgets to use 225 pounds of ground beef to make 200 1-pound hamburgers because some hamburgers invariably are overcooked or dropped on the floor (and therefore must be discarded).
Finally, Big Bob budgets to pay $3 per pound of ground beef.
For the most recent week (Big Bob’s is open 7 days a week), Big Bob served 1,200
1-pound hamburgers using 1,250 pounds of ground beef. In addition, Big Bob paid his supplier $3.20 per pound of ground beef for the 1,250 pounds he used during the week.

Required:
a. What were Big Bob’s ground beef price and quantity variances for the most recent week?
b. What factor(s) could explain Big Bob’s ground beef variances?

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Managerial accounting

ISBN: 978-0471467854

1st edition

Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin

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