SS Company has the following estimated costs for next year:

SS estimates that 10,000 direct labour and 16,000 machine

hours will be worked during the year. If overhead is applied on the basis of

machine hours, the overhead rate per hour will be:

At the end of the accounting year 31 March 2016, the trial balance of Tim plc. contains a suspense account with a credit balance of £36.

Which of the following is likely to cause this credit balance of £36 in the suspense account?

Elder Company, which has only one product, has provided the

following data concerning its most recent month of operations:

What is the net operating income for the month under absorption costing?

The accounts clerk of Sanjit plc. has recorded the purchase of computer stationery by debiting the computer equipment account, but has accurately credited to the correct account.

This would result in

Elder Company, which has only one product, has provided the

following data concerning its most recent month of operations:

What is the net operating income for the month under variable costing?

On 1 June 2015, Solomon plc. recorded share capital of 500,000 £1 shares, which were issued at £1.10 per share. On 30 May 2016, the company made a 1 for 5 bonus issue. The company recorded a retained earnings reserve of £417,000 on 31 May 2016 before accounting for this bonus issue.

What is the balance of the retained earnings reserve on 31 May 2016 after accounting for the bonus issue?

The POQ Company makes collections on credit sales according

to the following schedule:

25% in moth of sale

70% in month following sale

4% in second month following sale

1% uncollectible

The following sales have been budgeted:

 Cash collections in June would be:

On 1 October 2016, Chubb plc. issued 100,000 shares of 50p each at a price of £1 per share. The accounts clerk has correctly recorded the cash received, but has credited the full amount to the Share Capital account.

Which of the following entries correct the error made by the accounts clerk?

What is the cause of the difference between absorption costing net operating income and variable costing net operating income?

Nottingham plc. bought a motor vehicle on 1 January 2015 for £20,000. It was disposed of two years later on 1 January 2017 for £12,000. The company maintains a policy to depreciate all motor vehicles at 20% per year on a reducing balance basis.

What is the effect from disposal of this motor vehicle on Nottingham plc.'s statement of profit or loss for the year ended 31 December 2017?