Scrooge and Zilch, 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:

(25% complete) ...............................................................200

Returns started February ..............................................825

Returns in process, February 28:

(80%, complete) .............................................................125

Returns in process, February 1:

Labor......................................................................... £6,000

Overhead ................................................................... 2,500

Labor, February (4.000 hours) .............................. 89,000

Overhead, February .............................................. 45,000

All tough the euro is used in most European markets, day- to-day business m the United Kingdom continues to be conducted in pounds sterling,

Required:

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

a. Equivalent units of activity.

b. Cost per equivalent unit. (Remember to express your answer in terms of the British pound sterling, denoted by £.)

2. Compute the cost of returns in process as of February 28.