Mops Corporation is preparing its annual budget. As part of its analysis of the contribution of individual products to overall profitability, the senior management accountant Andrea - estimates the amount of inspection overhead that should be assigned to the individual product lines. Budgeted inspection costs are $12,000. Additional information is as follows:

	Small Pumps	Large Pumps
Units inspected	120	120
Hours spent inspecting	2.5	17.5
Direct labour hours per unit	2	2

Andrea is deciding on the best way to assign the inspection costs to each of the pumps. She has narrowed it down to two options:

Use a more traditional approach and assign inspection costs overhead on the basis of units inspected

Use an activity-based approach and assign inspection costs overhead using hours spent inspecting

Under each of the methods the costs assigned to the large pumps per unit respectively would be [closest to]:

a. $50 and $10500

b. $6000 and $10500

c. $12.50 and $87.50

d. $50 and $87.50

I think the answer is b, but I am not certain. Please provide detailed steps