Last year, TT Company reported £750,000 in sales (25,000 units) and a net operating income of £25,000. At the break-even point, the company's total contribution margin equals £500,000. Based on this information, the company's:

An equipment was purchased by Nottingham plc. for £8,000 in the first year of its operations. The company spent £1,000 on transportation cost and another £1,500 on installation. After 3 months of use, the equipment broke down and £600 repair costs were incurred.

Nottingham plc. depreciates all its equipment at 10% straight line.

At what Net Book Value should the equipment be shown in Nottingham plc.'s statement of financial position at the end of Year 1?

When applying manufacturing overhead to jobs, the formula to calculate the amount is as follows:-

The accounts clerk in Kings plc. has mistakenly treated a prepaid insurance of £350 as an accrual in the business's statement of profit or loss.

This has caused the profit to be

The following labour standards have been established for a

particular product:

Standard labour hours per unit of output …………………………. 5.0

hours

Standard labour rate …………………………………………………………. £19.85 per hour

The following data pertain to operations concerning the

product for the last month:

Actual hours worked …………………………………………………………. 7,300 hours

Actual total labour cost …………………………………………………….. £148,190

Actual output ……………………………………………………………………. 1,400 units

What is the labour efficiency variance for the month?

On 1 July 2015, Mason plc. has discovered that the prepaid business rates of £250 as at 30 June 2015 has been entered by the accounts clerk as accrual. Mason plc. has an accounting year end of 30 June 2016.

In the Business Rates expense account, Mason plc. should

JayJ Manufacturing Corporation manufactures and sells

stainless steel coffee mugs. Expected mug sales at JayJ (in units) for the next

three months are as follows:-

JayJ likes to maintain a finished goods inventory equal to

30% of the next month’s estimated sales. How many mugs should JayJ plan on

producing during the month of November?

Jenga plc pays its rent quarterly in advance on 1 January, 1 April, 1 July, and 1 October each year. As of 1 October 2015, the rent has increased from £48,000 per year to £60,000 per year.

What is the amount of rent expense to be recognised in Jenga's statement of profit or loss for the year ended 30 April 2016?

A manufacturing company that has only one product has

established the following standards for its variable overhead. The company uses

direct labour hours (DLHs) as its measure of activity.

Standard hours per unit of output …………………………………………….. 0.7

DLHs

Standard variable overhead rate ……………………………………………….. £14.30

per DLH

The following data pertain to operations for the last month:

Actual direct labour hours ………………………………………………………….. 1,600

DLHs

Actual total variable overhead cost ……………………………………………..

£22,400

Actual output ………………………………………………………………………………. 2,400 units

What is the variable overhead efficiency variance for the month?

On 30 September 2016, the company has trade receivables totalled £420,000 and the provision for doubtful debts from last year totalled £50,000. The company decides to write off debts totalling £30,000 and to adjust the provision to £45,000.

What is the amount of bad debts expense that should appear in the company's statement of profit or loss for the year ended 30 September 2016?