Kennedy Inc. has the following data for its operation in August:

Increase in direct materials inventory		100	Sets
Direct materials purchased (AQ)		1,600	Sets
Finished goods manufactured		700	units
Direct materials purchase-price variance	$	640	Favorable
Budgeted
Finished goods to manufacture		800	Units
Direct materials purchases		2,000	Sets
Direct materials per unit of finished goods		2	Sets
Direct materials price per set (SP)	$	5.10

What was the actual purchase price (AP) per set of direct materials purchased (to two decimal places)?

Multiple Choice

• $4.75.

• $5.07.

• $5.14.

• $4.70.

• $5.15.