Kilo Company uses a standard costing system that allows 2 pounds of direct materials for one finished unit of product. During July, the company purchased 55,000 pounds of direct materials for $360,000, and manufactured 13,500 finished units. The standard direct materials cost allowed for the units manufactured is $337,500. The performance report shows that Kilo has an unfavorable direct materials usage variance of $6,500. Also, the company records any price variance for materials at time of purchase. Kilo's standard price per pound of direct materials (SP) is: