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8.36 Big Bob's Burgers is justifiably famous for its whopping 1-pound (16 ounce) hamburger made with fresh ground beef and cooked to order. Together with
8.36 Big Bob's Burgers is justifiably famous for its whopping 1-pound (16 ounce) 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 3,600 ounces (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 $3.00 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. Additionally, 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 variance for the most recent week? b. What factor(s) could explain Big Bob's ground beef variances
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