Dozen Bakery makes cupcakes and cookies. Dozen gathered the following information for the current year regarding its use of flour and butter (flour is a direct material for cupcakes and butter is a direct material for cookies):

	Flour (Direct Materials) Cupcakes	Butter (Direct Materials) Cookies
Standard quantity per batch	5 bs.	2 lbs.
Standard Price (SP) per pound	$0.25/lb.	?
Actual quantity purchased (AQP) and used per batch (pounds)	?	5 lbs.
Actual Price (AP) paid	0.95/lb.	$2.37/lb.
Price variance	$210 U	$500 U
Quantity variance	$825 F	?
Flexible budget variance	?	$ 3,400 U
Number of units produced	320	450

What is the standard direct material price per pound for the butter in the cookies?

A.

$7.56/lb.

B.

$1.11/lb.

C.

$2.15/lb.

D.

$2.37/lb.