✅ The verified answer to this question is available below. Our community-reviewed solutions help you understand the material better.
A company uses standard costing. It purchases a type of small component to add on to its production. The component is normally expected to cost £0.85 per unit. In May, the quantity actually purchased is 6,800 units, though the standard allowance for actual production is 5,440 units. If the accountant reports an adverse purchase price variance of £544, then the actual purchase price per unit must have been