answer 7 ,8

7. Tia Co. is developing standards for its products. One product requires an input that is purchased for $123.00 per pound. By paying cash, the company gets a discount of 5% off this purchase price. Shipping costs amount to $3.60 per pound. Receiving costs are $0.26 per pound The standard price per pound of this input should be: Answer: [10 points] 8. Webster Company makes a product with the following standards regarding material costs and usage. Standard Quantity Standard Price - Per unit Per Pound Direct Material 3.0 Pounds $5.00 The company reported the following results concerning this product in May. Actual output 2,100 units Actual quantity of raw materials used in Production 6,500 pounds Actual cost of raw material purchased per pound $4.95 The direct materials purchases variance is computed when the materials are purchased. Compute the Material Price Variance for May. Answer: [10 points]