Beowulf and Grendel, a public accounting firm in London, is engaged in the preparation of income tax returns for individuals. The firm uses the weighted-average method of process costing for internal reporting. The following information pertains to February. ( denotes the British monetary unit, pounds sterling.)*

Returns in process, February 1:(20% complete)310Returns started in February920Returns in process, February 28:(75% complete)350Returns in process, February 1:Labor3,500Overhead4,000Labor, February (4500 hours)51,000Overhead, February35,375*Although the Euro is generally used throughout Europe, day-to-day business in the United Kingdom continues to be conducted in pounds sterling.

1.Compute the following amounts for labor and for overhead:

a.Equivalent units of activity.

b.Cost per equivalent unit.