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Big Bob's Burgers is justifiably famous for its whopping 1-pound hamburger made with fresh ground beer 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 of 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 for the 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.
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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In the current year, Hanna Company reported warranty expense of $190,000 and the warranty liability account increased by $20,000. What were warranty expenditures during the year?
Rumpole Company produces a special spray nozzle. The budgeted indirect total cost of inserting the spray nozzle is $100,000. The budgeted number of nozzles to be inserted is 25,000. What is the budgeted indirect cost allocation rate for this activ..
A firm has purchased, for 50,000 FCs, an electric generator from a foreign firm. The exchange rates were 1 FC = $0.80 on the delivery date and 1 FC = $0.76 when the payable was paid. What is the final recorded value of the payable if the two-trans..
when a company applies the partial equity method in accounting for its investment in a subsidiary and initial value, book values, and fair values of net assets acquired are all equal, what consolidation worksheet entry would be made?
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A flexible budget for 15,000 hours revealed variable manufacturing overhead of $90,000 and fixed overhead of $120,000. The budget for 25,000 hours would reveal total overhead costs of:
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