Wrong interval of recurring payment for auto-renewing membership

This issue has been reproduced on the CiviCRM sandbox (reporting 4.7.26 as on 9/11/2017).

This problem has been identified at two organizations who are implementing a membership program with both yearly and monthly options for payment.

• One organization has a membership type with a different term for each (Siver-Annual and Silver-Monthly);
• the other has only 1 membership type with a 1 month term (annual renewals are accomplished by using a membership price set option for 12 terms).
• Both organizations are using a price set on the contribution page.
• In both cases, the recurring payment always takes the interval defined in the membership type of the first item in the price set.

To recreate:

• Create two membership types, both rolling
  • Monthly - term 1 month
  • Annual - term 1 year
• Specify that the memberships have optional or required automatic renewal. Other membership parameters are not relevant
• Create a membership price set with a single field, configured as radio button or select
  • Option 1: Membership type: Annual, 1 term, any price
  • Option 2: Membership type: Monthly, 1 term, any price
• Create a contribution page to sell the memberships using the price set created in the previous step.
• Purchase a membership with the contribution page, selecting the Monthly membership option and automatic renewal
• The confirmation page will show "My membership will renew automatically every 1 year(s)" instead of 1 month.
• The contribution will show as recurring with an interval of 1 year instead of 1 month.
• If you add another membership type, "Quarterly," with a term of 3 months and create another price set, listing the Quarterly membership as the first option on the price set field, the contribution will be set to recur with an interval of 3 months.

It's worth noting that if the membership page is configured without a price set, that the interval for the recurring contribution is set correctly.

Update: 
Using the price set via the back-end "Submit Credit Card Membership" function, the recurring interval for the contribution is correct.