Company G-MAX set the following standard quantites and costs for materials and labor per unit for one of its hand-crafted golf clubheads:

Direct materials (0.5 lb per unit at $20 per lb.)..............................$10.00

Direct labor (1 hr. per unit at $8 per hr.)........................................$8.00

Total standard direct cost per unit.................................................$18.00

During May 2013, G-Max budgeted to produce 4,000 clubheads (units). It actually only produced 3,500 units. It used 1,800 of direct materials(titanium) costing $21.00 per pound, meaning its total material cost was $37,800. Compute the actual and standard costs for G-MAX's 3,500 units and its direct materials cost variance.

NOTE: this is an example problem taken directly from my book. Apparently, the standard quantity is 1,750 units sold at standard price of $20.00 per lb. I have no idea how they got a quantity of 1,750 units let alone the price for it. Can you please explain? Thank you!!