During the month of March, Baker's Express purchased 10,000 pounds of flour at $1 per pound. The production department used 9,500 pounds of flour to produce 100,000 biscuits. At the end of March, Baker's Express found it had a favorable materials price variance of $500. The standard cost per pound must be:
a. $1.00
b. $1.95
c. $1.05
d. $0.95
e. none of the above