Dear Disappointed: A good varmint rifle these days should put 5 shots in 1/2 inch, so you have a real problem. I’ve shot a number of rifles of the kind you bought, and they all gave fine accuracy, so it’s safe to conclude that there is something terribly wrong with that gun. It could be the bedding, or it could be the barrel, or it could be both. However, considering the care with which these rifles are made, I think it’s something more sinister–Satan, perhaps.
My advice is to bail out. Sell it, and take your beating like a man. The factory might be able to make it shoot better, but I don’t think they’d be able to get it anywhere near it should be. You could spend a bundle on re-bedding and installing a new barrel but that would almost certainly be throwing good money after bad, or something.
Nope, it’s time to say aloha, auf weidersehen, au revoir, and adios. Better luck with the next one, and this time, get it in a real varmint caliber like the .223.