Venda Company Purchased and Used 40,000 Pound of Materials in Production

Multiple Choice

Venda Company purchased and used 40,000 pound of materials in production. It paid $6.00 per pound for these materials. If the direct materials (DM) price variance was $50,000 favorable, what was the standard price per pound?

A) $4.25
B) $5.75
C) $7.25
D) $9.30