Problem 8-25B Materials and Labor Variances, Computations from Incomplete Data [LO8-4, LO8-5] Diamond Company makes one product and has set the following standards for materials and labor: Direct Materials Standard quantity or hours per unit Standard price or rate Standard cost per unit Direct Labor 2.00 hours 8.00 per hour ? pounds ? per pound $16.00 During the past month, the company purchased 6,300 pounds of direct materials at a cost of $15,750. All of this material was used in the production of 1,000 units of product. Direct labor cost totaled $13,440 for the month. The following variances have been computed Materials quantity variance Total materials spending variance Labor efficiency variance $ 675 U $ 585F $ 3,200 F Required 1. For direct materials a. Compute the standard price per pound for materials. (Do not round intermediate calculations Round your answer to 2 decimal places.) Answer is complete but not entirely correct Standard price 2.30 per b. Compute the standard quantity allowed for materials for the month's production Answer is complete but not entirely correct Standard quantity 6,007 pounds