$7.75 is the standard price per pound.
Material price variance = (Actual quantity * Actual price) - (Actual quantity * Standard price)
$5,000 = (20,000 * $8) - (20,000 * Standard price)
$5,000 = $160,000 - (20,000 * Standard price)
(20,000 * Standard price) = $160,000 - $5,000
(20,000 * Standard price) = $155,000
Standard price = $155,000 / 20,000
= $7.75
Price is one of the basic economic categories. The standard price concept is most commonly defined as the monetary value of a commodity. Price performs the following interrelated functions. For finished goods, the cost is only manufacturing or procurement costs.
Learn more about standard prices at
https://brainly.com/question/25279292
#SPJ4
