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Copyright © 2015 McGraw-Hill Education (Australia) Pty Ltd
IRM t/a Langfield-Smith, Thorne, Smith, Hilton Management Accounting 7e
1
CHAPTER 7
A CLOSER LOOK AT OVERHEAD COSTS
ANSWERS TO REVIEW QUESTIONS
7.1 When we refer to manufacturing overhead costs we are describing the indirect manufacturing costs of products.
These are the factory costs that are incurred in producing products but cannot be traced directly to them. They
include all manufacturing costs other than direct material and direct labour, such as the costs of supervision,
power, factory security and so on. From a product costing perspective, we can expand our definition of
overheads to include all product-related costs other than direct costs as managers may require comprehensive
estimates of product costs for making product-related decisions (see Chapter 4). However, as Australian
accounting standard AASB 102 Inventories requires that inventory valuations in external reports of
manufacturing businesses only include manufacturing costs, a distinction is drawn between indirect costs within
the manufacturing area, called manufacturing overhead, and other indirect costs incurred along the value chain,
upstream and downstream, of the manufacturing or production area.
Upstream costs and downstream costs, regardless of whether the entity is a manufacturer or a service provider
include costs incurred before and after the production process, such as research and development, design and
supply costs, marketing, distribution and customer service costs.
The indirect costs of responsibility centres are costs assigned to a unit in an organisation such as a department or
division where a manager is held accountable for performance. Indirect costs cannot be traced directly to the
centre so they need to be assigned instead.
7.2 Cost object: is something that is assigned a separate measure of cost because management need such cost
information; for example, responsibility centres, products, projects and so on. (The various production
departments in a manufacturing firm also provide examples of cost objects. For example, the material handling
cost pool may be allocated across the various production departments that use material handling services. In a
hospital costs may be assigned to reception, a ward, a doctor, operating theatres or intensive care unit (ICU) and
so on.)
Cost pool: a collection of costs that are to be assigned to cost objects. Costs are often pooled because they have
the same cost driver. (An example of a cost pool is all costs related to material handling in a manufacturing
firm.)
Cost allocation base: is some factor or variable that is used to allocate costs in a cost pool to cost objects. (An
example of a cost allocation base may be the weight of materials handled for each production department that
uses material handling services. This base would be used to assign the costs in the material handling cost pool to
the production departments.)
Cost driver: is a factor or activity that causes a cost to be incurred. (From the example above, the allocation base
of weight of materials handled for each production department may be a cost driver depending on its causal
relationship to the costs in the cost pool.)
The difference between cost allocation bases and cost drivers is that cost drivers are allocation bases but not all
allocation bases are cost drivers. Ideally allocation bases should be cost drivers; that is, there should be a cause
and effect relationship between the costs in the cost pool and the allocation base. In practice, some allocation
bases do not have this relationship, or the relationship is imperfect. Under these circumstances the accuracy of
the cost allocations can be questioned.
7.3 As shown in Exhibit 7.2 (Estimating the cost of a cost object), in estimating the cost of a cost object, direct costs
are traced directly to the cost object and indirect costs (those with no direct linkage to the cost object) are
collected into cost pools and assigned to the cost object by means of allocation bases, preferably cost drivers.
Some possible examples of cost objects and their direct and indirect costs for the NGOs involved in the tsunami
relief efforts (described in the ‘Real life - Measuring tsunami recovery costs: an overhead or not?’ on page 276)
follow:

2
Cost objects Direct costs Indirect costs
Programs to deliver
immediate disaster relief
• Campaign and administrative costs
that can be directly traced to
specific program
• Salaries of program designer and
planners
• Salaries of appeal workers
• Salaries of relief workers in
disaster area
• Transport of staff and relief goods
to disaster area
• Accommodation for relief workers
• Technical and logistical consulting
costs
• Food and clean water
• Medicines
• Temporary shelter
• General office and administrative
costs of NGO (depreciation of
office equipment, general
stationery and postage, rent,
cleaning, general accounting and
office staff salaries, bank fees etc)
• Salaries of CEO and top
management
• Legal, insurance and risk
management costs not directly
traceable
• Marketing, advertising, publishing
and other costs for general
awareness and fund raising
campaigns
• Consulting and advocacy activity
costs of seeking change in
government and institutional
policies
• External audit and reporting costs
Projects to:
• rebuild after a disaster
event
• construct additional
infrastructure
• deliver long-term
community development
• Administrative costs that can be
directly traced to specific projects
• Salaries of project designers and
planners
• Salaries of staff involved in project
field work
• Transport of staff and materials to
field
• Accommodation for field staff
• Technical and engineering
consulting costs
• Building and infrastructure
materials
• General office and administrative
costs of NGO (depreciation of
office equipment, general
stationery and postage, rent,
cleaning, general accounting and
office staff salaries, bank fees etc)
• Salaries of CEO and top
management
• Legal, insurance and risk
management costs not directly
traceable
• Marketing, advertising, publishing
and other costs for general
awareness and fund raising
campaigns
• Consulting and advocacy activity
costs of seeking change in
government and institutional
policies
• External audit and reporting costs

3
7.4 A cost allocation base is some factor or variable that allows us to allocate costs in a cost pool to a cost object.
One possible allocation base for assigning advertising costs to the various attractions of a large theme park
would be the number of people patronising the park’s attractions. This would assume that the number of people
attending a certain part of the theme park would be an indication of the advertising resources consumed by each
attraction. Notice that in most cases the sales revenue generated by the various components of the theme park
would not be a viable allocation base since most theme parks have a single admission fee for the entire park.
Note that some people would consider ‘corporate’ advertising of this nature should not be allocated to the
various subunits of the business, as it is very hard to determine a causal cost driver. In activity-based costing
terminology the advertising could be regarded as a facility cost.
7.5 The development of departmental overhead rates involves a two-stage process.
In stage one, overhead costs are assigned to the firm’s production departments. First, overhead costs are
distributed to all departments, including both support and production departments. Second, support department
cost allocation takes place which involves costs being allocated from the support departments to the production
departments. At the end of stage one, all overhead costs have been assigned to the production departments.
In stage two, overhead application occurs as the costs that have been accumulated in the production departments
are applied to the products that pass through the departments using the overhead rate set for each production
department.
7.6 A support department is a unit in an organisation that is not involved directly in producing the organisation’s
goods or services. However, a support department does provide services that enable the organisation’s
production process to take place. Production departments, on the other hand, are units that are directly involved
in producing the organisation’s goods and services.
Examples of ‘production’ departments in a bank may include cheque processing, tellers, loan departments and so
on. Examples of support departments in a restaurant chain may include washing dishes (either manual or
stacking and unstacking dishwashers), cleaning, ordering/buying (some franchises rely on ordering from a
central unit and some require purchasing at the local market), bookings desk, head office, laundry and
accounting.
7.7 Activity-based costing can be used to assign manufacturing overhead costs to products in two stages. In the first
stage overhead costs are assigned to activity cost pools (that is, activities). In the second stage, activity costs are
assigned from the activities to products in proportion to the products' consumption of each activity, measured by
the amount of activity driver consumed. In traditional costing systems, when a two-stage allocation process is
used, the first stage is to assign overhead costs to production departments and the second stage is to assign the
overhead costs from the production departments to products in proportion to the products' consumption of the
departmental overhead cost drivers.
7.8 Using departmental overhead rates instead of a single plantwide overhead rate can improve the accuracy of
product cost information. The allocation bases used for each department are likely to be more realistic in
representing the relationship between overhead costs and the product, compared to using just one plantwide rate.
However, using departmental overhead rates requires the distribution of overhead costs to departments, the
allocation of support department costs to production departments and the collection of cost driver data by
production departments. While this approach usually provides more useful information than the single cost pool
approach, it is more expensive to operate and still can provide misleading information. A problem with this
approach is that costs with different behaviour patterns are added together before allocation to the product. It is
difficult to identify a realistic cost driver for a cost pool that includes setup costs, space costs and indirect
material costs, for example.
Using activity-based costing should improve the accuracy of cost information. Allocating costs to activities
rather than departments enables the identification of even more appropriate allocation bases. For example ABC
uses both volume and non-volume based cost drivers as allocation bases and attempts to aggregate costs that
have similar behaviour patterns. Again, however, there is an additional cost in analysing costs and cost drivers at
an activity level rather than at a department level.

4
7.9 A cost driver is an activity or factor that causes costs to be incurred. A volume-based cost driver is a cost driver
that is a measure of or proxy for the volume of production. An assumption underlying the use of a volume-based
cost driver is that costs are caused, or driven, by the volume of production. Examples include direct labour
hours, machine hours and direct material volume.
Non-volume based cost drivers are cost drivers that are not directly related to the number of units produced. For
example in manufacturing the set up costs are not driven directly by the units of output since each batch can vary
in volume. In a bank, non-volume based costs can include human resource management (driven by staff
numbers), cleaning (driven by floor space or room numbers), and IT servicing (possibly driven by the number of
computers).
7.10 Labour cost is a commonly used base for allocating overhead costs to cost objects including projects such as
those undertaken by FFA. Although such projects may be self funded by the member countries they result in
additional overhead costs being incurred by the FFA. As these overhead costs cannot be specifically traced cost-
effectively to the individual projects, an appropriate allocation base is needed to allocate them to the individual
projects to avoid cross-subsidisation of projects from member contributions and donations.
It is likely that there is some relationship between the level of salary costs for the projects and the increase in
overhead costs incurred by the FFA (as larger, higher cost projects are likely to require more support from FFA),
though the correlation is unlikely to be perfect. In the absence of a stronger logical connection and a more
practical, cost effective allocation base the use of salary costs as the allocation base may be reasonable.
However, it is not surprising that the member countries questioned and sought independent advice on the
accountability of the seemingly high overhead recovery rate of 66% of salary costs, because to them the
overhead recovery is an uncontrollable cost.
7.11 The primary benefit of using a predetermined overhead rate instead of an actual overhead rate is to provide
timely information for decision making, planning and control. Also the predetermined rate removes fluctuations
inherent in monthly actual overhead rates. While the use of actual overhead rates removes the need to account
for over- or under-allocated overhead, this is because it relies on data that are not known until after the event, so
it cannot be used in a timely fashion. Notice that in both approaches, it is necessary to calculate an overhead rate,
as overhead costs cannot be traced directly to products.
7.12 The denominator volume is the measure of cost driver volume used to calculate the manufacturing overhead
rate. The most common measure is the budgeted volume of cost driver for the coming year. Theoretical capacity
is the maximum level of production that the plant can run at, without ever stopping. Practical capacity assumes
the business operates at the maximum level that its resources allow under normal, efficient operating conditions.
Product costs will be higher using practical capacity, as the denominator measure of cost driver volume will be
lower, resulting in higher overhead rates. Using theoretical capacity as the denominator will result in lower
overhead rates and product costs, but there will be higher levels of underapplied overhead.
7.13 Management accountants allocate indirect costs to responsibility centres to help managers understand the effects
of their decisions, to encourage particular patterns of resource usage and to support the product costing system.
For example production departments may source services from support departments and where these services are
supplied for ‘free’ there may be a tendency to over-consume them. Where they are charged to departments, the
departmental managers are held responsible for these costs and need to be careful about the amount of these
services they consume. Also, where departmental overhead rates are used for product costing, it is necessary to
allocate the costs of support departments to production departments, to calculate departmental overhead rates for
the production departments.
The problems encountered in allocating a proportion of costs of the Prime Infrastructure Group (which changed
its name to Babcock and Brown Infrastructure on 1 July 2005) to its responsibility centre of Dalrymple Bay Coal
Terminal (DBCT) related to the disentanglement of overheads associated with DBCT’s operations from the costs
of other activities within the Prime group. The amount of overhead allocated by Prime to DBCT affected the
overhead cost per loaded tonne sought to be recovered by DBCT in the total price per loaded tonne of coal
charged to terminal users. The terminal users have little option but to use the terminal facility because of its
monopolistic nature. The competition authority, to ensure fair and reasonable access for terminal users, needed
to approve the terms and conditions of terminal access. It sought an independent review of Prime’s method of
allocating overhead to DBCT, which found that Prime had not reliably estimated the amount of overhead
relating to DBCT. This ‘Real life’ example illustrates the impact that overhead cost allocation choices can have,
not only on product costs and product prices, but also industry competitiveness.

5
7.14 Budgeted support department costs should be allocated rather than actual support department costs. If actual
costs were allocated, the activities of the department that provides the services could compromise the results of
the department that uses these services as well as their ability to plan activities. The incentive for cost control in
the department that provides the services may be reduced if they just transfer those excesses to the next
department. The allocation on the basis of budgeted figures highlights the good or poor results in the sourcing
department.
7.15 Under the direct method of support department cost allocation, all support department costs are allocated
directly to the production departments, and none of these costs are allocated to other support departments. Under
the step-down method, a sequence is first established for allocation of support department costs. Then the costs
incurred in the first support department in the sequence are allocated among all other departments that follow in
the sequence, including other support departments. The method proceeds in a similar fashion through the
sequence of support departments, never allocating back to a support department that has had its costs allocated.
Under the reciprocal services method, a system of simultaneous equations is established to reflect the reciprocal
provision of services among support departments. Then, all of the support departments’ costs are allocated
among all of the departments that use the various support departments’ output of services. The reciprocal
services method of support department cost allocation is the only method that fully accounts for the reciprocal
provision of services among departments.
7.16 As stated in the previous answer, under the reciprocal services method all of the support departments’ costs are
allocated among all of the departments that use the various support departments’ output of services. It is the only
method that fully accounts for the reciprocal provision of services among departments. However, this degree of
accuracy may not be necessary for the purpose and sometimes makes very little difference to the resulting
costings. The degree of inaccuracy of the reciprocal and step down methods depends on the amount of overhead
in each cost pool and the level of support provided between departments. As the method of allocating support
department costs becomes more detailed and sophisticated the cost of maintaining the system increases.
7.17 The term reciprocal services refers to two or more support departments providing support services to each other.
In a university, for example, the IT department provides support services to the human resource (HR)
department but the human resource department also provides HR support to the IT department. In fact IT gives
support to all other departments (e.g maintenance, grounds, student administration, faculty administration,
library, security) and receives support from many of them (maintenance of facilities, HR, security).
7.18 The contribution margin statement is used to highlight the separation of variable and fixed costs. The total
contribution margin is equal to sales revenue less the variable cost of goods sold (sometimes called the variable
manufacturing expenses) and the variable selling and administrative expenses. The fixed expenses deducted
below the contribution margin include both fixed manufacturing overhead and fixed selling and administrative
expenses.
In the absorption costing income statement the cost of goods sold expensed, for each month, includes variable
manufacturing costs and the predetermined fixed manufacturing overhead cost applied to products sold. The
expenses deducted after that are the selling and administrative expenses, which include both fixed and variable
components.
7.19 Both absorption and variable costing systems assign direct material, direct labour and variable manufacturing
overhead costs to products in exactly the same way, but they differ over their treatment of fixed manufacturing
overhead. Absorption costing includes fixed manufacturing overhead as a part of product cost. Variable costing
excludes fixed manufacturing overhead from product cost and expenses it in the period in which it is incurred.
The key distinction between variable and absorption costing is the timing of fixed manufacturing overhead
becoming an expense. Eventually, fixed overhead is expensed under both product costing systems. Under
variable costing, fixed overhead is expensed immediately, when it is incurred. Under absorption costing, fixed
overhead is inventoried and not expensed until the accounting period during which the manufactured goods are
sold.

6
7.20 Variable product costs are particularly useful for short-term decisions, such as whether to make or buy a
component, and pricing—especially when variable selling and administrative costs are included. The fixed costs
will be incurred anyway and in the short term they should be disregarded. In making these decisions, the variable
costs provide a good measure of the differential costs that need to be assessed. The information needed for short-
term decision making is discussed in Chapter 19.
Under variable costing, profit is a function of sales. The classification of costs as fixed or variable makes it
simple to project the effects that changes in sales have on profit. Managers find this useful for decision making.
Also, cost volume profit analysis (which we discuss in Chapter 18) requires a variable costing format.
Planned costs must take account of cost behaviour if they are to provide a reliable basis for control. In addition,
the link between sales and profit performance, under variable costing, ensures a performance measure that
managers understand easily.
Fixed costs are an important part of the costs of a business, especially in the modern manufacturing environment.
Variable costing provides a useful perspective of the impact that fixed costs have on profits by bringing them
together and highlighting them, instead of having them scattered throughout the statement.
Absorption product costs include unitised fixed overhead, which can result in suboptimal decisions, especially as
fixed costs are not differential costs in the short term. However, in the modern business environment, with a high
level of fixed overhead, a relatively small percentage of manufacturing costs may be assigned to products under
variable costing. Also, in the longer term a business must cover its fixed costs too, and many managers prefer to
use absorption cost when they make cost-based pricing decisions. They argue that fixed manufacturing overhead
is a necessary cost incurred in the production process. When fixed costs are omitted, the cost of the product is
understated.

7
SOLUTIONS TO EXERCISES
Exercise 7.21 (20 minutes) Predetermined overhead rates for various cost drivers:
manufacturer
NOTE: Budgeted sales revenue, although given in the exercise, is irrelevant to the solution.
1 Predetermined overhead rate =
driver
cost
of
level
budgeted
overhead
ing
manufactur
budgeted
(a) $546 000
15 000 machine hours
= $36.40 per machine hour
(b) $546 000
30 000 direct labour hours
= $18.20 per direct labour hour
(c) $546 000
$630 000*
= $0.867 per direct labour dollar or 86.7%
of direct labour cost
*Budgeted direct labour cost = 30 000 hours x $21
Actual overhead rate = actual manufacturing overhead
actual level of cost driver
(a) $510 000
16 500 machine hours
(b) $510 000
= $18.89 per direct-labour hour
(c) $510 000
$607 500*
= $0.84 per direct labour dollar or 84%
of direct labour cost
*Actual direct-labour cost = 27 000 hours x $22.50
2 Denyer Ltd will not know the data for actual costs and cost drivers until the end of the year. For timely decision
making it is necessary to have estimates and use predetermined rates.
Exercise 7.22 (20 minutes) Predetermined plantwide overhead rate: printing firm
budgeted manufacturing overhead
budgeted level of cost driver
$546 000
15000 machine hours
2 Business cards 600  $36.40 = $21 840
Wedding invitations 300  $36.40 = $10 920
Promotion flyers 200  $36.40 = $7280
3 Actual
manufacturing
overhead
−
Applied
manufacturing
overhead
=
Overapplied or underapplied
overhead
$51 000 − (1100)($36.40) = $10 960 underapplied

8
Exercise 7.23 (30 minutes) Predetermined plantwide overhead rate; alternative cost drivers
budgeted manufacturing overhead
budgeted level of cost driver
(a)
$546 000
= $18.20 per direct labour hour
(b) $546 000 = $1.30 per direct labour dollar or
$420 000 130 of direct labour cost
2 (a) Business cards 800 direct labour hours  $18.20 = $14 560
Wedding invitations 600 direct labour hours  $18.20 = $10 920
Promotion flyers 400 direct labour hours  $18.20 = $7280
(b) Business cards (800 direct labour hours)($22.50)  1.30 = $23 400
Wedding invitations (600 direct labour hours)($22.50)  1.30 = $17 550
Promotion flyers (400 direct labour hours)($22.50)  1.30 = $11 700
3 Actual
manufacturing
overhead
−
Applied
manufacturing
overhead
=
Overapplied or underapplied
overhead
(a) $51 000 − (1800)($18 20) = $18 240 underapplied overhead
(b) $51 000 – (1800)($22.50)(1.30)† = $1650 overapplied overhead
† Actual direct labour cost = 1800  $22.50
In hindsight, direct labour dollars seems the most appropriate cost driver, as it results in the lowest level of
underapplied/overapplied overhead. It therefore appears to better represent the behaviour of overhead costs.
However, it is difficult to make this judgment based on just one month’s data.
Exercise 7.24 (10 minutes) Departmental overhead rates: manufacturer
Applied manufacturing overhead per deluxe saddle and accessory set:
Tanning Department 110 m2
 $8 $ 880
Assembly Department 4 machine hours  $22 88
Saddle Department 45 direct labour hours  $10 450
$1418
Exercise 7.25 (15 minutes) Volume-based cost driver versus ABC: manufacturer
1 Material handling cost per mirror:
$180000
60
( ) 500
( )+ 60
( ) 500
( )
é
ë ù
û*
´ 500 = $1500
* The total number of direct labour hours.
An alternative calculation, since both types of product use the same amount of the cost driver, is the
following:
$180 000
120*
= $1500
* The total number of units (of both types) produced.

9
2 Material handling cost per lens = $1500. The analysis is identical to that given for requirement 1.
3 Material handling cost per mirror:
$180 000
8 + 32
( )
*
´8
60
= $600
* The total number of material moves.
4 Material handling cost per lens:
$180 000
8 + 32
( )
*
´ 32
60
= $2400
* The number of material moves for the lens product line.
Exercise 7.26 (20 minutes) Normal costing; alternative denominator volumes: engineering
firm
1 Practical capacity will be greater than the actual volume of production. Overhead will be underapplied at the end
of the coming year. Job costs and tender quotes will be lower than their actual costs because the overhead cost
will be understated.
2 A change from practical capacity to the budgeted volume will increase the overhead rate and, therefore, increase
job costs and tender quotes. This will make it more difficult to win tenders.
3 If normal volume were used, by the end of this year actual production will be lower than the normal volume, as
the company is expected to be in the ‘trough’ of its normal business cycle. Overhead would be underapplied, but
not by as much as it would have been if practical capacity had been used as the denominator volume. Next year
the company will be in the peak of its two-year cycle and, if normal volume is used as the denominator volume,
overhead will be overapplied. Over the two-year cycle, the underapplied and overapplied overhead should even
out, assuming that actual production behaves as expected over its normal cycle.
Job costs and tender quotes under normal volume will be understated this year and overstated next year,
compared to their actual cost. The average cost over the two years should approximate the actual production
cost.
Exercise 7.27 (10 minutes) Direct method of support department cost allocation: bank
Direct customer service departments using services
Deposit Loan
Provider of service
Cost to be
allocated Proportion Amount Proportion Amount
Human Resources $ 720 000 (50/80) $ 450 000 (30/80) $270 000
Computing 1 200 000 (60/80) 900 000 (20/80) 300 000
Total $ 1 920 000 $1 350 000 $570 000
Grand total $1 920 000

10
Exercise 7.28 (15 minutes) Step-down method of support department cost allocation: bank
Human
resources Computing
Direct customer service departments
using services
Deposit Loan
Costs prior to allocation $720 000 $1 200 000
Allocation of Human Resources
Department costs $720 000 144 000 (2/10) $360 000 (5/10) $216 000 (3/10)
Allocation of Computing
Department costs $1 344 000 1 008 000 (60/80) 336 000 (20/80)
Total costs allocated to each
department $1 368 000 $552 000
Total cost allocated to direct
customer service departments
$ 1 920 000

11
Exercise 7.29 (25 minutes) Reciprocal services method of support department cost
allocation: bank
First, specify equations to express the relationships between the support departments.
Notation: H denotes the total cost of Human Resources
C denotes the total cost of Computing
Equations: H = 720 000 + 0.20C (1)
C = 1 200 000 + 0.20H (2)
Solution of equations: Substitute from equation (2) into equation (1).
H = 720 000 + 0.20(1 200 000 + 0.20H)
= 720 000 + 240 000 +0 .04H
0 .96H = 960 000
H = 1 000 000
Substitute the value of H into equation (2).
C = 1 200 000 + 0.20(1 000 000)
C = 1 400 000
Next, use the calculated total allocation figures in the cost allocation using the reciprocal services method:
Support departments Direct customer service departments
Human Resources Computing Deposit Loan
Traceable costs $720 000 $1 200 000
Allocation of Human
Resources Department costs (1 000 000) 200 000(0.2) $500 000(0.5) $300 000(0.3)
Allocation of Computing
Department costs 280 000(0.2) (1 400 000) 840 000(0.6) 280 000(0.2)
Total cost allocated to each
direct customer service
department $1 340 000 $580 000
Total costs allocated
$1 920 000
Exercise 7.30 (20 minutes) (appendix) Variable and absorption costing
1 Porter Ltd.
Income statement under absorption costing
Year ended 31 December
Sales revenue (36 000 units at $45/unit) $1 620 000
Less: Cost of goods sold (36 000  $35/unit)* 1 260 000
Gross margin 360 000
Less: Selling and administrative expenses:
Variable $108 000
Fixed 30 000
138 000
Net profit $222 000

12
2
PorterLtd
Contribution margin statement under variable costing
Year ended 31 December
Sales revenue (36 000 units at $45/unit) $1 620 000
Less: Variable expenses:
Variable manufacturing costs
(36 000  $27/unit) $972 000
Variable selling & administrative costs 108 000
1 080 000
Contribution margin 540 000
Less: Fixed expenses
Fixed manufacturing overhead $300 000
Fixed selling and administrative expenses 30 000
330 000
Net profit $ 210 000
* Assuming that the production of 25 000 units equalled the normal capacity, the fixed manufacturing overhead per unit is
$8 ($300 000/37 500 units).
3 (a) The absorption costing profit is higher because 1500 units produced are carried forward as finished goods
inventory. Each unit carries forward a cost of $8 for manufacturing overhead that is expensed under
variable costing. Therefore using the absorption costing method the costs in the income statement are
$12 000 lower than when using the contribution margin approach, where total fixed costs are expensed as
period costs.
(b) The short cut method is based on the change in closing inventory, which represents costs incurred in the
current period which will be released against future revenue. Where production is greater than sales (as in
this case) the higher value of closing inventory deducted from the cost of goods available for sale shows a
lower cost of goods sold— and, therefore, a higher gross profit. The calculation for this is shown below.
Increase (decrease)
in units in inventory

fixed manufacturing cost
per unit
= difference in profit
1500 units  $8 = $12 000 more under
absorption costing

13
SOLUTIONS TO PROBLEMS
Problem 7.31 (30 minutes) Plantwide and departmental overhead rates: manufacturer
Instructors please note before setting this problem: The actual overhead of $300 000 is for the whole plant (that is,
Fabrication plus Assembly Departments).
1 Total budgeted overhead = $270 000 + $135 000 = $405 000
Budgeted direct labour hours = 22 500 + 90 000 = 112 500
Predetermined overhead rate = $405 000/112 500 = $3.60 per direct labour hour
2 Laser:
31 500 hours  $3.60 = $113 400 (overhead)
[$113 400 + $90 000 (prime costs)]/11 250 units = $18.08 per unit
Inkjet:
93 000 hours  $3.60 = $334 800 (overhead)
[334 800 + $675 000 (prime costs)]/112 500 units = $8.98 per unit (rounded)
3 Departmental overhead rates:
Fabrication = $270 000/45 000 = $6 per machine hour
Assembly = $135 000/90 000 = $1.50 per direct labour hour
4 Laser:
Applied overhead = (15 000  $6) + (30 000  $1.50) = $135 000
Cost per unit = (135 000 + 90 000)/11 250 = $20 per unit
Inkjet:
Applied overhead = (30 000  $6) + (72 000  1.50) = $288 000
Cost per unit = $(288 000 + 675 000)/112 500 = $8.56 per unit
5 (a) Plantwide overhead rate:
Applied overhead (124 500 labour hours  $3.60) $448 200
Actual overhead 450 000
Underapplied overhead $1 800
(b) Departmental overhead rates:
Applied overhead (45 000 machine hours  $6) $270 000 in Fabrication
Applied overhead (102 000 labour hours  $1.50) $153 000 in Assembly
Total applied overhead $423 000
Actual overhead 450 000
Underapplied overhead $ 27 000
6 One would expect the departmental overhead rates to be the best approach. However, in this case the plantwide
rate results in less underapplied/overapplied overhead. Perhaps direct labour hours is a better cost driver for
‘Fabrication’ than machine hours. As the question does not identify the actual overhead costs for each
department separately, it is not possible to identify which department contributes most to the underapplied
overhead and, therefore, assess the appropriateness of each department’s cost driver.

14
Problem 7.32 (25 minutes) Predetermined plantwide overhead rate; different time periods;
pricing: manufacturer
1 (a)
Estimated
manufacturing
overhead
Estimated direct
labour hours
(DLHs)
Quarterly
predetermined
overhead rate
(per DLH)
First quarter $200 000 25 000 $8.00
Second quarter 160 000 16 000 $10.00
Third quarter 100 000 12 500 $8.00
Fourth quarter 140 000 14 000 $10.00
$600 000 67 500
(b) (i) & (ii) Part A200 produced January April
Direct labour rate per hour $30.00 $30.00
Number of DLHs per unit 20 20
Overhead rate per DLH $8 $10
Direct material 200 $200
Direct labour 600 $600
Overhead 160 $200
$960 $1 000
2 (a) January ($960 x 1.10) $1056
(b) April ($1000 x 1.10) $1100
3
Estimated
manufacturing
overhead
Estimated direct
labour hours
(DLHs)
Quarterly
predetermined
overhead rate
(per DLH)
First quarter $200 000 25 000
Second quarter 160 000 16 000
Third quarter 100 000 12 500
Fourth quarter 140 000 14 000
Totals $600 000 67 500 $8.89 (rounded)
4 (a) & (b) Part A200 produced January April
Direct material $200.00 $200.00
Direct labour 600.00 600.00
Overhead ( 20 DLH x overhead
rate of $8.89 per DLH) 177.80 177.80
$977.80 $977.80

15
5
Price is cost plus 10% markup
i.e. $977.80 x 1.10 $1075.58
6
The annual rate is preferred, as it averages out (that is, normalises) the effects of fluctuations in overhead costs and
cost driver volumes over the year. Notice that with quarterly overhead rates, the firm may underprice its product in
January and overprice it in April. Note also that an increase in prices in two quarters of the year could further decrease
demand for the product, which would then further increase its cost and price per unit.

16
Problem 7.33 (45 minutes) Departmental overhead rates and activity-based costing:
manufacturer
1 (a) Former product costing system: traditional system based on a single volume-related cost driver.
(b) Current product costing system: departmental overhead rates based on different cost drivers.
Support Department
Costs Allocation

17
(c) Contemplated product costing system: activity-based costing.
2 Suggested activity cost pools and activity drivers are shown in 1 (c) above.
Overhead costs are assigned to activity cost pools
associated with significant activities
Overhead
costs
assigned to
activities.

18
Problem 7.34 (50 minutes) Plantwide versus departmental overhead rates; product pricing:
manufacturer
1 Schedule of budgeted overhead costs:
Department A Department B
Variable overhead
A 20 000 direct labour hours  $32........................................ $640 000
B 20 000 direct labour hours  $8......................................... $160 000
Fixed overhead ............................................................................... 400 000 400 000
Total overhead................................................................................ $1 040 000 $560 000
Grand total of budgeted overhead (A + B): $1 600 000
Predetermined overhead rate =
total budgeted overhead
total budgeted direct labour hours
=
$1 600 000
40 000
= $40 per hour
2 Product prices:
Basic
system
Advanced
system
Total cost...................................................................................... $2 200 $3 000
Mark-up, 10% of cost................................................................... 220 300
Price.............................................................................................. $2 420 $3 300
3 Departmental overhead rates:
Department A Department B
Budgeted overhead (from requirement 1)..................................... $1 040 000 $560 000
Budgeted direct-labour hours ....................................................... 20 000 20 000
Predetermined overhead rates....................................................... $1 040 000
20 000 DLHrs
$560 000
20 000 DLHrs
$52 per $28 per
direct labour hour direct labour hour

19
4 Revised product costs:
Basic system Advanced system
Direct material.............................................................................. $800 $1600
Direct labour................................................................................. 600 600
Manufacturing overhead:
Department A:
Basic system 5 x $52 ...................................................... 260
Advanced system 15 x $52 ............................................. 780
Department B:
Basic system 15 x $28 .................................................... 420
Advanced system 5 x $28 ................................................ _ ____ 140
Total $2 080 $3 120
5 Revised product prices:
Total cost...................................................................................... $2 080 $3 120
Mark-up, 10% of cost................................................................... 208 312
Price .......................................................................................... $2 288 $3 432
6 CONSTELLATION TELECOMMMUNICATIONS LTD
Memorandum
Date: Today
To: President, Constellation Telecommunications Ltd
From: I M Student
Subject: Departmental overhead rates
Until now the company has used a single, plantwide overhead rate in calculating product costs. This approach resulted
in a product cost of $2200 for the basic system and a cost of $3000 for the advanced system. Under the company’s
pricing policy of adding a 10 per cent mark-up, this yielded prices of $2420 for the basic system and $3300 for the
advanced system.
When departmental overhead rates are calculated, it is apparent that the two production departments have very different
cost structures. Department A is a relatively expensive department to operate, while Department B is less costly. It is
important to recognise the different rates of cost incurrence in the two departments, because our two products require
different amounts of time in the two departments. The basic system spends most of its time in Department B, the
inexpensive department. The advanced system spends most of its time in Department A, the more expensive
department. Thus, using departmental overhead rates shows that the basic system costs less than we had previously
realised; the advanced system costs more. The revised product costs are $2080 and $3120 for the basic and advanced
systems, respectively. With a 10 per cent mark-up, these revised product costs yield prices of $2288 for the basic
system and $3432 for the advanced system. We have been overpricing the basic system and underpricing the advanced
system.
I recommend that the company switch to a product costing system that incorporates departmental overhead rates.

20
Problem 7.35 (30 minutes) Activity-based costing calculations
1 Cost rates per unit of each cost driver:
(a)
Activity
(b)
Activity
cost pool
(c)
Quantity of
cost driver
(b)  (c)
Cost rate per unit
of cost driver
Machine setup................. $200 000 200 setups $1 000 per setup
Material receiving........... 120 000 80 000 kg $1.50 per kg
Inspection........................ 160 000 1 600 inspections $100 per inspection
Machinery-related........... 840 000 60 000 machine hours $14 per machine hour
Engineering..................... 280 000 7 000 engineering hours $40 per engineering hour
Total overhead ................ $1 600 000
2 Overhead assigned to each product line:
Activity
Overhead assigned to
Basic system line
Overhead assigned to
Advanced system line
Machine setup..........................
$ 50 000 (50 setups  $1000) $150 000 (150 setups  $1000)
Material receiving....................
45 000 (30 000 kg  $1.50) 75 000 (50 000 kg  $1.50)
Inspection.................................
70 000 (700 inspections  $100) 90 000 (900 inspections  $100)
Machinery-related....................
280 000 (20 000 machine hrs  $14) 560 000 (40 000 machine hrs  $14)
Engineering..............................
120 000 (3 000 eng. hrs  $40) 160 000 (4 000 eng. hrs  $40)
Total overhead .........................
$565 000 1 035 000
3 Overhead assigned per unit of each type of printer:
Basic system................................................................................ $565 ($565 000  1000 units)
Advanced system......................................................................... $1035 ($1 035 000  1000 units)
4 Comparison of total product cost assigned to each product under three alternative product costing systems:
Plantwide overhead rate*....................................................... $2 200 $3 000
Departmental overhead rate** ............................................... 2 080 3 120
Activity-based costing†
.......................................................... 1 965 3 235
* From the data given in the preceding problem.
** From the solution to the preceding problem.
†
The assigned overhead as calculated in requirement 3 above, plus the direct material and direct labour costs given in
the data for the preceding problem:
Basic system ........................................................................ $1965 = $1400 + $565
Advanced system................................................................. $3235 = $2200 + $1035

Another Random Scribd Document
with Unrelated Content

name, if it was known, would be blasted, and he must die
the death of the worst of criminals. One gleam of hope
alone remained. As he was led off by the soldiers sent to
apprehend the mutineers, Jacob Tuttle had shaken his hand,
and though he did not speak, had given him a significant
look, which had evidently been intended to keep up his
spirits. Happily Tuttle had taken no part in the mutiny, and
had been among the first to urge his shipmates to return to
their duty. Still how could an illiterate seaman, unable even
to write, be able to help him?
The trial of Richard Parker very soon after this took place on
board the “Neptune,” of 98 guns, off Greenhithe, a few days
having been allowed him to prepare for his defence. No trial
could have been more fair or just. Parker defended himself
with considerable ability. Nothing, however, could be
stronger than the evidence brought to prove that he was
one of the chief instigators of the mutiny, and that he had
acted as the chief of the mutineers. The court accordingly
adjudged him to death. Parker heard his sentence with a
degree of fortitude and composure which excited the
astonishment of all present. He submitted, he said, still
asserting the rectitude of his intention.
“Whatever offences may have been committed,” he added,
“I hope my life will be the only sacrifice. Pardon, I beseech
you, the other men. I know that they will return with
alacrity to their duty.”
On the 29th of June, Parker was conveyed on board the
“Sandwich,” the ship on board which he had acted so
prominent a part. On being conducted to the quarter-deck,
the chaplain informed him that he had selected two psalms
appropriate to his situation. Parker assenting, said, “And
with your permission, sir, I will add a third,” and named
Psalm thirty-one. Prayers being ended, he arose from his

knees and asked the captain if he might be indulged with a
glass of white wine. On its being presented to him, he
exclaimed, lifting up his eyes, “I drink, first, to the salvation
of my soul; and next, to the forgiveness of all my enemies.”
He then begged that Captain Moss would shake hands with
him. This the captain did. He then desired that he might be
remembered to his companions on board the “Neptune,”
with his last dying entreaty to them to prepare for their
destiny and to refrain from unbecoming levity. On being led
to the scaffold on the forecastle, he asked whether he might
be allowed to speak.
“I am not going to address the ship’s company,” he added;
“I only wish to acknowledge the justice of the sentence
under which I suffer, and to pray that my death may be
considered a sufficient atonement for the lives of others.”
Turning round, he then asked if any person would lend him
a white handkerchief. This, after a little delay, was handed
to him. He then begged that a minute might be allowed him
to recollect himself, when he kneeled down about that
space of time. Then rising up, he said, with considerable
dignity, and perfect coolness, “I am ready,” and firmly
walked to the extremity of the scaffold. For an instant he
stood there, full of life and strength, with a head to plan,
and nerve to carry out his objects. He dropped his
handkerchief, the gun was fired, and he was run up to the
yard-arm. A struggle, and he was dead.
For more than a month the court-martial continued sitting
and trying the other mutineers. A considerable number
received sentence of death; among them was Andrew
Brown. Several were ordered to be flogged from ship to
ship, and others were confined in the Marshalsea prison for
certain periods.

Parker’s was the first death, but many of the other
ringleaders were directly afterwards executed at the yard-
arms of their respective ships. The prisoners were tried in
succession, and the sentence was forthwith carried out on
those who were condemned to death. Harry fully expected
ere long to be called forth to undergo his sentence, and he
came to the resolution of not attempting any effort to
escape his doom.

Chapter Twenty One.
Mabel’s Resolve.
Mabel and her aunt had taken up their residence for some
time at the small bow-windowed house in the upper part of
the town of Lynderton. It had been described as a very
genteel residence for a spinster lady. To say that it had neat
wooden railings before it, and steps leading up to the front
door, kept scrupulously clean, will be sufficient to give an
idea of Mabel’s new abode. The style of life the two ladies
led was very different to what they had been accustomed
to. Mary remained as general servant, while the cook, who
had grown fat and aged at Stanmore, entreated that she
might accompany her old mistress. Paul Gauntlett declared
that the day he should be separated from them would be
his last. So he also was allowed to take up his abode in the
bow-windowed house, though his accommodation was
limited in the extreme. All he wanted was house-room.
Wages he would not receive, and he had been too long
accustomed to forage for himself to require being fed. It
cannot be said that the family were reduced to complete
poverty, still their means were very scanty. Mabel had
literally nothing, but an annuity had been secured to Madam
Everard on the Stanmore estates, which Mr Sleech could
not touch, though he did his best to make it as small as
possible by putting her to considerable expense before she
could obtain it.
Strange to say, when Mabel heard that her father and Harry
were still alive, her regret for her loss of property was
greater than it had been previously. She had formed all
sorts of plans for her future career. As long as her aunt
lived, she would attend to her. When she was called away

she would go out and teach, or enter some family as a
governess. Now, however, the case was altered. Her father
would never consent to her doing that, while she could no
longer hope, as she had hoped, to become the well-
dowered wife of Harry Tryon. She loved him—that she
knew. Would he continue to love her? She had no doubt
about that, but would he have the power of giving her a
home? Would he be able to return to the position he had
abandoned in Mr Coppinger’s counting-house, and, with the
assistance of his guardian, labour till he had gained an
independence? She thought Harry would be capable of
anything. Her father would, at all events, be ready to help
him by every means in his power. He surely could refuse
nothing to the man who had saved his life so bravely at the
risk of his own. Her father had always been looked upon as
a man of great influence. It did not occur to her that this
arose from his being supposed to be the heir of Stanmore—
the owner of the borough, who could return two members
at his will. Poor girl! Captain Everard as he had been, and
Captain Everard, though a very good officer, without a vote
in Parliament, and with his pay only to support him, were
very different persons.
The Everards had always been Tories. Mr Sleech supported
the opposite party, and was now giving all his influence to
the Whig interest.
The people in the neighbourhood, however, called very
frequently at Madam Everard’s door to inquire after her.
Among the few admitted was the Baron de Ruvigny. Each
time he came he talked more and more of the Coppingers,
and Mabel could not help discovering that he was
completely captivated by the charms of Sybella Coppinger.
He brought also all the news of the day. From Paul
Gauntlett, however, who read the paper through, they
learned chiefly the progress of the mutiny.

Mabel at length became very anxious about Harry. She did
not know in what ship he was serving, and though she felt
sure that he would not join the mutineers, she could not
help dreading that he might be placed in danger in
consequence of what was occurring. Her anxiety was
increased by not hearing from him as she had expected.
She was certain that he had not forgotten her. Her
confidence, indeed, in his faith and love remained
unshaken. At last Mary received a letter in an unknown
hand. It was very unlike the one which Harry had written at
Tuttle’s dictation, but this also professed to be from Jacob.
It was short, for the writer was evidently not much
accustomed to the use of the pen. It ran thus: “Dear Mary,
—This comes to tell you that we’re in a mess. Some of our
fellows have been holding out against the Government, and
have got nothing for their pains. We have had a number of
delegates going about from ship to ship, and they have
been and got some of themselves hung, and not a few
flogged round the fleet. Sarves them right, say I. I should
not mind it, if it was not for a shipmate, you knows who,
who has been put in limbo. His name abroad is Andrew
Brown, but your young lady knows him, and knows that
that is not his name. Worser still, he’s going to be hung. If I
could get liberty, I’d go and see you and tell you all. It’s a
sad thing, and I would give my eyes to save the young
chap.—Yours to command, Jacob Tuttle—his cross X.”
Mary, who had not deciphered the letter very clearly,
brought it to her mistress. As Mabel finished it, the paper
fell from her hands. A deadly pallor overspread her
countenance, and she fell back fainting into the arms of her
attendant. Happily, Paul at that moment came into the
sitting-room, and assisted the damsel in placing her
mistress on a sofa. While Mary ran to get restoratives, and
to call Madam Everard, his eye fell on the paper. Seeing the

rough style of handwriting, he thought that he might with
propriety read it over.
“That’s it,” he said to himself; “it’s that young gentleman,
he’s gone and done something desperate. We must get him
out of the scrape, or it will be the death of Miss Mabel.”
Mabel quickly returned to consciousness and found Paul and
Mary standing near her. Madam Everard had gone out.
“I know all about it, Miss Mabel,” said Paul, “and I want to
help you.”
“Do you think this can allude to Harry?” she asked; “I mean
Mr Tryon.”
“Too likely,” said Paul; “I won’t deny it, because it’s clear to
my mind that something must be done to save him. Cheer
up, Miss Mabel. We will do it if it can be done. There’s that
old gentleman who takes an interest in Master Harry—his
guardian, you call him. I would go to him. He would be the
best man to say what can be done, and I am sure he would
do it.”
“Oh! that he would, for I am confident that Harry is
innocent. He never would have done anything worthy of
death. I will go up to the Admiralty and plead for him; I will
tell them who he is. They would never allow him to be
executed; or if they will not listen to me, I will go to the
King himself. I will plead with his Majesty; he will surely
have power to save him.”

Chapter Twenty Two.
Unexpected Evidence.
At an early hour of the day, towards the end of June, two
persons on horseback might have been seen proceeding
through the New Forest. The sun, just rising, cast his rays
amid the boughs of the trees, throwing long shadows over
the greensward. Here and there light-footed deer, cropping
the dewy grass, started as they heard the footsteps of the
horses, and went bounding away farther into the depths of
the forest. One of the persons was a young lady mounted
on a light, active palfrey; while the other, a tall old man,
bestrode a large, strong steed, well capable of bearing his
weight. A brace of formidable-looking pistols were stuck in
his holsters, while another pair of smaller dimensions were
placed in the belt he wore round his waist. In his hand he
carried a thick stick, which might have proved no bad
substitute for a broadsword.
“It was indeed thoughtful of you, Paul,” said the young lady,
looking round at her companion, without in any way
checking the rapid speed at which she was proceeding. “I
little expected to mount Beauty again, and could not have
accomplished our journey so well, I am sure, on any other
horse.”
“Why, Miss Mabel, do you see, when we had to surrender
Stanmore to Old Sleech, I thought to myself, neither he nor
any of his young cubs shall ever mount the horse my dear
young mistress has ridden; so as soon as it was dark one
night, I trotted him off to my good friend Farmer Gilpin, and
says I to the farmer, ‘You take care of this horse, and let no
one have him till I come and fetch him away; he’s not

stolen, and you need not be afraid of the halter. I will pay
you for his keep when I fetch him away.’ Mr Sleech, cunning
as he is, had not made a list of the horses, so did not miss
Beauty; besides, she was yours, and not his, though he
would have claimed her; and that’s the long and short of
my story, Miss Mabel.”
“Thank you, thank you, indeed,” answered Mabel. “Do you
think Beauty will get through the journey in a couple of
days?”
“I am afraid not, Miss Mabel,” answered Paul. “I would
advise you to sleep twice on the road, and then you will get
in fresh the third day, and be able at once to go to Mr
Thornborough’s. He was a friend of the colonel, I know, and
from what you tell me, I am sure he will give you as much
assistance as anybody.”
Madame Everard, when she heard the dangerous situation
in which Harry Tryon was placed, could not bring herself to
refuse Mabel’s wish to set off immediately to try what could
be done to assist him. She, however, had advised her going
at once to her godfather, Mr Thornborough, who, being a
man of influence, and possessing great knowledge of the
world, was able to render her more help than Mr Kyffin
could. She had, however, wisely written to Harry’s guardian,
telling him what she knew, and also her purpose of going to
the house of Mr Thornborough. She was too anxious to
speak much during her ride.
From the rapid rate at which she proceeded it was evident
that she knew the road thoroughly, as she had never even
to ask her companion which way to take. The two travellers
had nearly reached the confines of the forest, when
suddenly she came upon a large party of men, surrounding
several light waggons. They were sitting on the ground with

bottles and provisions near them, while their horses stood
tethered at green spots close at hand.
On being suddenly surprised by Mabel and old Paul, several
of them started up and seized their bridles. Paul’s stick was
instantly raised in the air, as if about to come down on the
heads of his assailants.
“Avast there, mate!” sung out one of the men, “we’re not
going to ill-treat you if you behave peaceably, but we want
to know where you and the young lady are going.”
“Oh, pray let us go!” exclaimed Mabel; “we are simply going
to London on a matter of great importance, and whoever
you are we cannot do you any harm.”
“Well, young lady, that may be true enough,” answered one
of the men; “but you must just come and have a word with
our captain. If he has no objection, we don’t want to keep
you.”
“Pray let him come and see us immediately,” said Mabel;
“we are anxious to be liberated without delay.”
The men, without heeding her request, led her horse and
that of Paul a little distance on one side, where, seated on
the grass, enjoying a long pipe, with a book at his elbow,
and a cup of coffee before him, was a person whose
appearance betokened nothing of the smuggler or brigand.
As soon as he saw Mabel he started up, and inquired if he
could be of any service to her. She told him of the
interruption she and her attendant had received, and
begged that she might be no longer detained. “Yes, sir, I
say it’s a great shame, and times are very bad when a
young lady like Miss Everard, with her attendant, cannot
ride through the forest without being stopped by a gang of
smugglers.”

“Miss Everard, I beg you many pardons,” exclaimed the
smuggler captain. “My scoundrels are unable to distinguish
one person from another. If you will allow me I will
accompany you some way on your road, so that I may
protect you from any similar annoyances.”
Saying this the captain sent for his horse, which he
immediately mounted, and rode alongside Mabel through
the remainder of the forest.
“I must ask your confidence, Miss Everard,” he said; “I am
an especial friend of your father’s. Indeed, I owe my life to
his courage and gallantry, and I shall be thankful of an
opportunity to render you any service in my power.”
“I know, sir, what you say is true,” observed Paul, glancing
at the stranger. “I remember your coming to Stanmore that
sad night, when Miss Lucy was taken ill, and I was close by
when Captain Everard and you were speaking together. Are
you not Captain Rochard?”
“You are right, my friend,” said the stranger. “By that name
Captain Everard knew me. Necessity, and not my will,
compels me to associate with these people,” he continued;
“not for the sake of making money, but for another motive,
believe me. You do not suppose that your father would
allow me his friendship did he believe that I was the leader
of a band of outlaws. I may some day tell you my motives
of associating with these men. To your father I owe my life,
and that alone would make me take an interest in you,
young lady; but I may also tell you that I have another
reason. We are related, although not very nearly. Your
father’s mother was a relation of my father. I never saw her,
for she died when I was very young; indeed, I am but a few
years older than your father.”

“You related to us? You know then the facts of the marriage
of my grandfather to my grandmother. How little did I
expect to hear this. You may be of the very greatest
assistance to us.”
Captain Rochard assured Mabel that it would be a great
satisfaction to him to be so. She then told him of the loss of
the certificate, and the successful scheme which their
relative Mr Sleech had set up for obtaining possession of the
property.
“For my own sake,” she observed, “I care little for what has
occurred; but it will be a bitter thing for my father when he
returns to find that he has been deprived of the property he
thought his own.”
Captain Rochard was silent for some minutes; then turning
to Paul, he asked suddenly—
“Do you know in what year the colonel’s brother married?”
“Yes, sir, I mind it well; it was the beginning of the war with
France, and much about the time that Frederick of Prussia
opened his seven years’ war, and Admiral Byng did not beat
the French in the first action, and was shot in consequence.
A difficult job Lieutenant Everard had, too, to bring home
his young baby, and escape the French cruisers. I mind his
coming home as well as if it had been yesterday, and
Madam Everard taking care of the little motherless boy,
that’s the captain now—this young lady’s father—as if he
had been her own child, and the poor lieutenant going to
sea, and getting shot the next year. He died as a brave
officer might wish to die, on the deck of his ship, lashing the
enemy’s bowsprit to his own mainmast, that she might not
get away—”

“But I forget dates; in what year was that?” asked Captain
Rochard, interrupting the old man, who might otherwise
have run on to a much further length in his recollections.
“That was in the year ’56 or ’57 to the best of my mind,”
answered Paul. “The captain’s a little above forty, and it’s
about that time ago.”
“Thank you, my friend,” said Captain Rochard; “I shall
remember the dates, and will put them down by-and-by.
Your grandfather, I believe,” he continued, addressing
Mabel, “married in the south of France, where my relatives
were residing at the time. Alas! this fearful revolution has
swept off many of them; but still some few, especially
among the older ones, survive. The young, and strong, and
healthy were the chief victims. I’ll say no more. I’ll do my
best to aid your father, and enable him to recover his rights.
I wish that he was in England at present, that I might
consult with him first. I am quite willing, at all risks, to go
over to France, and to endeavour to bring over the
witnesses to the marriage, or the documents which may
prove it.”
Mabel expressed her thanks to Captain Rochard, who now
inquired what business took her to London. She hesitated
for some time. At last she thought, “He’s true and kind, and
though he may not be able to assist me, I shall have his
sympathy and good wishes.” She then told him frankly of
the dangerous position in which Harry Tryon was placed, of
course asserting her belief in his innocence.
“That fine young fellow? I know him well,” said the captain.
“I am sure he would not commit an unworthy action. I have
more power to help him than you may suppose. Give me all
the particulars with which you are acquainted, and I will try
what can be done. Do you, however, proceed in your

undertaking; I have great hopes that your efforts will not be
without a happy result. That boy must not be put to death.
I would go through anything to save him.”
By this time they had reached the confines of the forest.
Captain Rochard said he must go back to his companions.
He bade Mabel a kind farewell, when she and Paul
continued their journey towards London. Beauty seemed to
understand that he was on an important journey, for never
had he trotted so swiftly over the ground. Mabel knew the
importance of reserving his strength too much to allow him
to break into a canter, or to push him on in a gallop, though
her own feelings might have prompted her to do so. It was
absolutely necessary during the heat of the day to rest. A
small inn appeared close to the road. Mabel threw herself
down on a little sofa in the room appropriated to her, at the
door of which Paul kept ward and watch till it was time
again to start. The horses, well groomed and fed, were then
led forth, looking almost as fresh as when they started in
the morning. Thus, before nightfall a large portion of the
distance to London had been accomplished.

Chapter Twenty Three.
In Mr Coppinger’s Counting-House.
Mr Stephen Coppinger had been for some time in town,
leaving his family at Lynderton. It was not a time when a
mercantile man could neglect his business. There was a
great deal to do, for confidence had been restored in the
mercantile world after the mutiny of the fleet had been
completely put down.
Silas Sleech was at his desk, and, like the rest of his
companions, busily employed.
Mr Kyffin did his best to attend to business, but his mind
was greatly disturbed. He could gain no tidings of his ward.
All he could learn was that he had left the ship in which he
had returned to England, and had gone on board another
man-of-war. Too probably she was one of the mutinous
fleet. Mr Kyffin heard of many men losing their lives in the
scuffles which ensued on board the ships when the loyal
part of the crew were struggling to restore the power into
the hands of their officers. Too probably Harry, on one side
or the other—he hoped on the loyal side—might have lost
his life in one of these scuffles. He was sure otherwise that
the lad would have written to him. One letter might possibly
have miscarried, but he would not have gone so long
without writing a second or a third time. He was instituting,
in the meantime, all the inquiries in his power, but he could
not hear the name of Harry Tryon on board any of the ships.
He was not aware, of course, that Harry had changed his
name, nor that it was a common custom with seamen in
those days to do so, for various reasons. Had he known of
the existence of Jacob Tuttle he might have applied to him,

and he therefore had not the same means of learning about
him which Mabel possessed.
On the arrival of the post one morning at Idol Lane Mr
Sleech received a letter from his “respected father.” The
ordinary observer would have discovered nothing in the
countenance of Silas to indicate its contents. He, however,
folding it up, put it in his pocket, and forthwith betook
himself to the door of Mr Coppinger’s private room, at which
he humbly knocked. On being admitted, he explained to his
principal that he had received notice of the illness of his
father and one of his sisters, and that his presence, as the
eldest son of the family, would be greatly required. He
therefore entreated that Mr Coppinger would allow him to
set forth without delay for Stanmore.
Mr Coppinger was a kind-hearted man, and would on no
account detain him if Mr Kyffin could manage to have his
duties performed during his absence.
Silas, thanking his principal, withdrew, and in a humble
tone of voice entreated Mr Kyffin to make the necessary
arrangements. The head clerk looked hard at Silas, who,
though not easily abashed, let his eyes drop before him.
“Yes; if Mr Coppinger gives you leave, I will certainly not
detain you,” answered Mr Kyffin.
Silas was in a great hurry to be off. Quickly putting the
books at which he had been working in their places, he
closed his desk and hurried out of the office. Mr Kyffin
looked after him.
“So great a villain never darkened that door before,” he said
to himself. “May it be the last time he ever passes through
it!”

Under where Silas Sleech’s hat and cloak had hung Mr
Kyffin saw a bunch of keys. He had evidently dropped them
in his hurry to leave the house.
“I am the fittest person to take charge of these,” said Mr
Kyffin to himself, and he forthwith retired with them into Mr
Coppinger’s room. He there held a consultation of some
length; then once more entering the office, he waited till
the hour of closing. The clerks were dismissed. He and Mr
Coppinger alone remained in the office. Mr Sleech’s desk
was opened with one of the keys. Within was a strange
assortment of articles, and among others a small iron box,
with Mr Silas Sleech’s name painted outside. There were
lottery tickets, and pawnbrokers’ duplicates, and packs of
cards—some curiously marked—and dice which had a
suspicious tendency to fall with the higher numbers
uppermost, and letters from dames of scarcely doubtful
character.
“I have suspected as much for long,” said Mr Kyffin, “but I
could not well bring the proof home. This, however, will
convince you that Silas Sleech is not a trustworthy person.”
“Indeed it does,” exclaimed Mr Coppinger; “but see what
this strong box contains. Probably if he leaves such articles
as this scattered about, without thinking it necessary to
conceal them, the contents of that box are of a more
damaging character.”
The box was opened by one of the keys of the bunch.
“Ah!” exclaimed Mr Kyffin, “here is a letter directed to me. It
is the one I have long missed from my unfortunate young
ward, Harry Tryon. Excuse me, sir, while I read its
contents.”
Mr Kyffin ran his eye over the letter.

“The poor lad here gives an explanation of his conduct, and
his reasons for quitting London. He weakly yielded to the
temptation thrown in his way by Silas Sleech, that is very
evident, but in no other respect do I believe that he was
criminal. However, we will look over the remainder of these
papers, and I trust then we shall have the means of
exonerating him still further. What do you think of these
papers?” asked Mr Kyffin, holding a sheet up to Mr
Coppinger.
On it was written over and over again the name of the firm,
as signed by Mr Coppinger himself. Evidently the writer had
been endeavouring to imitate Mr Coppinger’s signature. He
had done so very successfully. Indeed, another paper was
found containing a signature which Mr Coppinger declared
to be genuine. It was clearly the copy for the others.
“Now I feel sure,” said Mr Kyffin, “that Silas Sleech forged
that paper which he wished it to be supposed Harry had
forged, while it’s very possible that he may also have forged
Harry’s signature to some of the bills which he showed us
when he endeavoured to prove Harry’s guilt.”
“I indeed think your account very likely to be true,” said Mr
Coppinger. “I am ashamed at having allowed such a
scoundrel as Mr Sleech undoubtedly is, to have remained so
long in my office undetected; yet so plausible are his
manners, that had this evidence against him not been
discovered, I should have been unwilling to believe him
guilty.”
“You will not let him escape, surely, sir,” said Mr Kyffin;
“justice demands that he should be brought to trial, so that
the character of your nephew may be vindicated.”

The two gentlemen examined all the papers thoroughly,
making notes of their contents, and then locked them
carefully up in the safe in Mr Coppinger’s room. Mr Kyffin
having accompanied Mr Coppinger to Broad Street, and
supped with him, returned at night to the office, where he
occasionally occupied a bedroom. He had been in bed for
some time, though not asleep, thinking over Harry’s affairs,
when he was aroused by a knocking at the door. He heard
the porter go out of his room and admit some one. It
immediately struck him that it was Silas Sleech; for as the
porter knew nothing of his proceedings, he would naturally,
without hesitation, admit him. Rapidly dressing, therefore,
he struck a light, and putting the pistol, which he usually
carried to and from Hampstead, in his pocket, he proceeded
down-stairs. The person who had come in did not go to Mr
Sleech’s room; but after a few minutes’ conversation
entered the counting-house. Mr Kyffin heard him wish the
porter good-night, and say that he should not be long.
“Call me at an early hour, there’s a good fellow, for I have
to be off betimes,” he added.
Mr Kyffin waited a minute, and then proceeded down-stairs
into the office. A light was burning on the desk. By it he saw
Mr Sleech hunting about in all directions, evidently looking
for his keys. The search was, of course, in vain. He seemed
to think so, for producing a cold iron from his pocket, with
as little noise as possible he wrenched open the desk. He
seized the light and looked in. Dismay was depicted on his
countenance. At that instant Mr Kyffin entered the room.
“Wretched scoundrel, confess your villainies!” he exclaimed.
“Was it to betray an honest youth, and to blast his character
through a miserable feeling of jealousy and revenge, that
you pretended to be his friend? Confess what you have
done, or prepare to be given over into the hands of justice.”

On hearing Mr Kyffin’s voice Silas dropped the lid of the
desk, and slipping off his stool, went down on his knees,
holding up his hands with a look of the most abject terror. “I
did not intend to injure him, indeed I did not!” he
exclaimed, in a whining voice.
“Oh! Mr Kyffin, you know how long I have toiled for the
house, and how our employer’s interests were as dear to
me as my own; then how can you accuse me of doing such
things as you say I have done?”
“Don’t kneel to me,” answered Mr Kyffin, sternly; “don’t add
additional falsehood to your other villainies. Expect no
leniency from me. Of all bad characters, I hate a hypocrite
the most. I will make no promise, but if you will confess in a
court of justice what you have done, I may possibly
endeavour to have your punishment mitigated, and no
other promise can I make.”
“I will do all you ask, indeed I will,” answered Silas, “only
don’t look so fierce; don’t shoot me,” he exclaimed, looking
at the pistol which, unconsciously, Mr Kyffin had taken from
his pocket.
“I have no intention of shooting you, but again say I will
make no promises. Mr Coppinger will decide what is to be
done with the man who has robbed him, and so cruelly
treated his nephew.”
Saying this, Mr Kyffin returned the pistol to his pocket. The
round eyes of Silas had been watching him all the time. He
now hung down his head as if ashamed to meet Mr Kyffin’s
glance. His eye, however, was glancing upward all the time.
Suddenly he made a spring, and rushed towards Mr Kyffin.

“I will have my revenge!” he exclaimed, grappling with him.
Mr Kyffin, though advanced in life, was as active as ever. His
muscles and nerves had never been unstrung by
dissipation, as were those of Silas, who found that he had
met almost his match. The young man, however, struggled
desperately, as a fierce desire seized him to destroy his
opponent. He felt for the pistol in his pocket. With insane
satisfaction he grasped it, and was drawing it forth, with a
determination of shooting the owner, when he found his
arm seized, and directly afterwards he lay on the ground
with the sturdy porter and Mr Kyffin standing over him.

Chapter Twenty Four.
A Ball at Stanmore, and what took Place at it.
Mr Sleech and his family were enjoying their possession of
Stanmore. He had begun to cut down the trees which he
and his son had marked, and as many of them were very
fine and old, he was delighted to find that they would fetch
the full amount he had anticipated. This encouraged him to
proceed further.
“I have often heard that trees about houses are not
wholesome,” he observed. “The more space we can clear
away the better, and really a five-pound note to my mind is
better than an old tree, with its boughs spreading far and
wide over the ground, and shutting out the sunlight.
Nothing will grow under old trees except fungi, and the
ground may be much better occupied.”
A sufficient time had now elapsed, in the opinion of Mr
Sleech, since the death of Colonel Everard, his predecessor,
to allow him to give a party at Stanmore without
impropriety. The Misses Sleech were busily employed in
sending out invitations. They asked everybody, whether
they had called or not. “The chances are they will come,”
they observed, “and it will not do to be too particular.” They
were rather surprised to find that several of the principal
families in the neighbourhood declined. However, their
rooms were sure to be filled, there was no doubt of that.
The foreign officers had no scruple about coming, and at a
distance there were several families with whom Mr Sleech
was more or less acquainted, who would be glad to accept
the invitation. Miss Sleech, Miss Anna Maria Sleech, and
Miss Martha, who were out, were very anxious to have their

brother Silas. They agreed to write to get him down. They
could not ask Mr Coppinger to allow him to come merely for
the sake of a ball; they therefore begged their father from
his fertile brain to invent an excuse, which that gentleman
had no scruple whatever in doing. The result of that letter
has been seen. At the hour he was expected to arrive, the
carriage was sent over to meet the coach, but neither in the
inside nor on the out was Silas Sleech to be seen.
“Of course he will come to-morrow in plenty of time for the
ball,” observed his sisters, consoling themselves. Old Mr
Sleech, however, wanted his son’s advice and assistance.
The morning before the intended fête, when workmen were
busy in different parts of the house preparing the rooms,
placing tents outside the windows, and arranging flowers
and taking up the carpets, a carriage drove up to the door.
A gentleman stepped out of it in a naval undress. He looked
about him with an air of mute astonishment.
“Who is here? what is taking place?” he asked of the
servant who opened the door.
“Why, we are going to have a ball to-night,” was the answer.
“Who do you want to see?”
“A ball!” exclaimed the stranger. “My aunt and daughter
giving a ball! Has Colonel Everard so completely
recovered?”
“Why, bless you, Colonel Everard has been dead ever so
long, and the Misses Everard are not in the house. My
master is Mr Sleech, the owner of Stanmore. If you want to
see him I will take in your name.”
“Are you mocking me, man?” exclaimed the stranger.
“Where are Madam and Miss Everard?”

“Why, I rather fancy they have gone to live in the town
since they were turned out of this,” answered the man, with
an impudent look.
“Let me see Mr Sleech immediately, then,” said the stranger,
entering the house. “I must learn clearly what has taken
place without delay. Where is Mr Sleech?”
“Who wants me?” asked a voice from the study, the door of
which faced the entrance. The stranger, advancing with
rapid step, entered the room.
“I am Captain Everard, sir,” he said, facing Mr Sleech, who
had risen from his chair with a newspaper in his hand. “Let
me know, I entreat you, by what means you have come into
possession of Stanmore, and tell me did I hear rightly that
my uncle is dead?”
“Dead as a door-mat,” answered Mr Sleech, “you may
depend on that; and as to how I came into possession of
Stanmore, I came in by right of law. I don’t want to hurt
your feelings, Captain Everard, but you know that
legitimacy takes precedence over illegitimacy. It is not a
man’s fault when his mother has forgotten to get the
marriage ceremony performed; but her children have to
take the consequences. You understand me, I need not be
more explicit.”
“What do you mean?” exclaimed Captain Everard, leaning
on a chair to support himself, for though a strong man, late
events had shaken him. He was yet more completely
overcome by the news he had just heard.
“Mean, sir, that your father, Lieutenant Everard, of the Royal
Navy, brother of the late Colonel Everard, and of my
beloved and departed wife, was never married to your
French mother; no witnesses are to be found, and no

documents exist to prove that any such marriage ever took
place. By right of law, therefore, when my excellent
brother-in-law, Colonel Everard, departed this life, I, as the
representative of his sister—he having no direct heir—
became possessed of this very fine and beautiful estate. It
is not my fault that your father was not married; it is not
your fault; nor could I forego the privileges and advantages
which accrue from possessing this estate.”
“You should know, sir, that my father was married. The
colonel always believed that he was, and treated me as his
heir,” answered Captain Everard, with all the calmness he
could command. “But, as you say, the law must decide, and
if it decide against me, I must submit. You, by some means,
have got into possession; I cannot, therefore, turn you out.
I can only judge of the way you have treated those dear to
me by the manner in which you have received me.”
The captain drew himself up, and was about to retire from
the room.
“Come, we are relations, though you bear the name of
Everard by courtesy,” said Mr Sleech, putting out his hand;
“I don’t want to quarrel about the matter; your ill-luck is my
good fortune; that’s the view of the case I take.”
Captain Everard drew back his hand.
“No, sir, no. I cannot impute wrong motives to you; but, at
the same time, I cannot pretend friendship to a person who,
without apology, casts a stigma on the names of my father
and mother.”
“As you please, as you please,” said Mr Sleech, in an
apparently indifferent tone; “I wish to do you good, but I
cannot make a silk purse out of a sow’s ear. If you won’t
receive my kindness, that’s your look-out, and not mine.”

Captain Everard had always felt an especial dislike to his
aunt’s husband; it now, very naturally, increased
considerably. Still he spoke calmly.
“I must bid you good-day, sir,” he said. “For my daughter’s
sake and my own, you must expect that I will use every
means to regain the property which I believe to be rightfully
mine.”
“And I will do my best to keep what I have got, and I rather
think I shall succeed,” answered the attorney, as the captain
left the room without deigning to cast another look upon his
relative.
The door had been left open, and the conversation had been
heard by several of the servants and workmen. They were
mostly creatures of Mr Sleech, for he only patronised those
he thought likely to serve him in any way he might require.
They had collected in the hall as the captain passed through
it—some to gaze at him with curiosity, not unmixed perhaps
with pity; others holding their hands to their mouths, as if
to hide their laughter.
“I told you what was true, captain, although you did not
believe me,” said the man who had admitted him. “I hope
you won’t be for doubting a gentleman’s word again when
he speaks the truth.”
The captain made no answer to the fellow’s insolence; but,
stepping into the post-chaise, ordered the man to drive
instantly to Lynderton.
Madam Everard received her nephew with an anxious
countenance.
“Where is Mabel?” he exclaimed; “has anything, too,
happened to her?”

“She is alive, and I hope well,” answered his aunt. “The
poor girl, her feelings have been sorely tried, first by her
anxiety about you, and then by the fearful position in which
Harry Tryon has been placed.”
She then told him of the mutiny, and of the way in which
Harry had been implicated.
“She knows also that he saved your life, and that of course
has not tended to decrease her love for him.”
“Harry Tryon saved my life!” exclaimed the captain. “I have
not seen him since I met him at Stanmore, that I am aware
of.”
“But you knew a young seaman called Andrew Brown; did
you not recognise Harry Tryon in him?”
“How extraordinary!” exclaimed the captain. “I several
times saw the likeness, but could not believe in the
possibility of his having come to sea with me. Yes, indeed,
he did save my life in a gallant way, and I longed to hear of
the lad again, that I might show my gratitude.”
“I fear that if he suffers, Mabel’s heart will break,” said
Madam Everard. “Executions of the misguided men are
taking place every day. She has, therefore, had no time to
lose, for we know not how soon the unhappy young man
may have to share the fate of his companions. My heart
sickens at having to utter such words. A week has passed
since she left me, and I have not since heard of her. I am
very anxious as it is, but I should be still more so were she
not under the charge of so trustworthy an attendant as Paul
Gauntlett.”
Captain Everard had been so anxious to hear about his
daughter that he had not hitherto inquired of Madam

Everard further particulars regarding the circumstances
which had compelled her and his daughter to leave
Stanmore. They were briefly told.
“I must see Wallace,” he said, “and ascertain whether any
certificate of my father’s marriage exists.”
While he was speaking the servant entered, to say that two
gentlemen were at the door, and the Baron de Ruvigny and
Captain Rochard were announced. The latter in his delight,
as he entered, seized Captain Everard in his arms.
“My dear friend, I am overjoyed to meet you!” he
exclaimed. “What have I heard? Ah! it is too true that you
have been deprived of your estate; but though the sun be
hidden by a thick cloud, it is sure to burst forth again. Be
not troubled about it; I have longed to show how deeply
grateful I feel to you for saving my life. Your daughter has
told me that you require evidence of your father’s marriage
to my relative, and I trust that, even now, though so many
years have passed, it may be obtained. It shall be my care,
at every risk, to search for it. You could not possibly travel
in my distracted country. There may be danger for me, but
less danger than there would be for you. If I do not return
you will know that I have fallen, and you must then get
some one to supply my place. Believe me, though, that it
will be my joy and satisfaction to serve you.”
“I trust you, count; I feel sure that you will not fail to do
your utmost for me.”
It was with somewhat painful feelings, not unmixed with
contempt, that Madam Everard watched the carriages
proceeding down the street towards Stanmore, on the
evening of the ball. The spinster ladies had either to walk or
to club together to hire the only public vehicle in the place,

which was constantly kept moving backwards and forwards,
from the first moment at which they could with decency
appear at the hall, till a late hour in the evening. Miss
Sleech, and Miss Anna Maria Sleech and her sisters, of all
ages, were dressed out in what they conceived the height of
fashion to receive their guests. A few ladies in pattens and
high hoods, attended by their maid-servants with umbrellas
and lanterns, arrived at an early hour. The Misses Sleech
were not afraid of them, as they were their old
acquaintances, and they now treated them with that
condescending kindness which they felt was due from
themselves in their position. Their dresses were admired;
the roses on their cheeks and the patches which they had
stuck on their faces. They had time also to exhibit the
decorations, and the alterations which they had made in the
rooms. Mr Sleech, in small clothes and pumps, his hair
freshly powdered, a huge frill to his shirt, and the neck-
cloth of many turns round his throat, with a coat, put on for
the first time, with a high collar, almost hiding his ears,
stood ready to make his bows to those he considered
worthy of receiving them. For a few minutes he stood
practising flourishes with his cocked hat, having received
lately a few private lessons from his daughter’s dancing-
master, to fit him, as he hoped, for his exalted situation.
One thing only was wanting to fill up his cup of happiness,
his satisfaction, and pride. He could not help wishing that
the eldest scion of his house—the heir of Stanmore—had
been present. Even now he thought it possible he might
come. At length some guests of greater distinction began to
arrive. The officers of the foreign legion of course came,
although they were perfectly well aware of the difference
between the old and new families; but there was no reason
why they should lose an evening’s entertainment. The
Misses Coppinger also came with an aunt, a Mrs Simmons,
who always went out as their chaperone. They were not
aware of the connection between their host and their

father’s clerk. It is just possible, had they been so, they
might have declined the invitation, that gentleman not
standing in any way high in their estimation. Before long,
Admiral Wallace hobbled in, his voice sounding loud and
cheery through the half-filled rooms, as Mr Sleech bowed
and salaamed to him with due respect, and the Misses
Sleech performed the courtesies they had learned from M.
Millepied, their dancing-master.
“Well, Sleech, you have done the thing well,” cried the
admiral. “I little thought to see anybody else than an
Everard in this house. However, the world’s turned upside
down; rogues get into honest men’s places, and honest men
come to the wall—that’s the way affairs go at present.”
“I am obliged to you for the compliment, Sir James,”
answered Mr Sleech, again bowing, and not knowing
whether to take offence.
“I don’t mean to call you a rogue, Sleech, of course,”
answered the admiral, intending to exculpate himself.
“Never think of calling a man a rogue in his own house,
whatever I may think about the matter.”
Happily for both parties, the conversation was cut short by
the entrance of General and Mrs Perkins, whose tall figures
completely overwhelmed that of the somewhat diminutive
lawyer. Again he bowed as before, now to the lady, now to
the gentleman, who returned his salutations in a somewhat
cold manner, and passed on, looking round the rooms with
inquisitive glances, and making remarks as they passed
along. The Misses Sleech curtseyed as before. Mrs Perkins
returned their salutes with one of her stiffest bows. Now the
people came trooping in more rapidly, and the music at
length struck up, to call the dancers into the ball-room,
where M. Millepied had been engaged as master of the

ceremonies. Bowing to the guests, he assumed his
responsible office. Still Mr Sleech looked round in vain for
those he would most have delighted to see. There were
several whose names he would not have valued much at the
back of a bill, and not a few ladies whose characters would
certainly have ill borne any very minute examination. Still
he hoped that they would not be observed in the crowd, or
attempt to make themselves conspicuous. Vain hope. Their
names were quickly buzzed about, and they took good care
to be seen dancing with the most dashing of the officers,
while they paid constant and especial attention to the
Misses Sleech.
At length a real English countess arrived.
She had lately come to Lynderton, and knew very little of
the politics of the place, but having received the Misses
Sleech’s card and an invitation to Stanmore, which she
knew to be the principal house in the neighbourhood, her
ladyship had accepted the invitation. It is possible that she
might have been surprised at the appearance of Mr Sleech
and his family, but was certainly too well-bred to exhibit her
opinion. She passed on with her daughters, hoping to take
up a retired position, where she could observe what was
going on without herself attracting attention. Mr Sleech,
however, was far too delighted at the honour done him to
allow her to carry out her intention, and every instant he
was coming up and making one of his flourishing bows,
either with offers of refreshment, or with a request of being
allowed the honour of introducing most eligible partners to
Lady Mary and Lady Grace. They, however, from the first,
declined dancing, after which, even had they desired it,
they could not, without offending those who had first
offered, have accepted other partners.

Mr Sleech was on his way, for about the twentieth time, to
the countess, when his eldest daughter came up to him,
and, in a hurried voice, said that a person wished to see
him on important business.
“Tell him to come in, then; I cannot come out to see him. If
he has got any message to deliver he must deliver it here,”
answered Mr Sleech, scarcely knowing what he was saying.
His daughter hurried off. Soon afterwards a man was seen
in a horseman’s suit passing among the gaily-dressed
throng towards the master of the house.
“Who do you come from?” asked Mr Sleech, eyeing him
narrowly.
“From Mr Coppinger,” answered the messenger. “It is about
a matter of importance, and he told me to see you
immediately.”
“What is it? Is it about my son?” asked Mr Sleech, in a
nervous voice.
“I believe so; but that will tell you,” said the man, delivering
the letter he held in his hand. Mr Sleech, in his eagerness,
tore it open, forgetting at the moment by whom he was
surrounded. His eyes ran rapidly over the paper. With
unrepressed anger he broke silence, exclaiming—
“My son accused of forgery! It is a lie. Mr Coppinger is a
base liar; I will bring an action against him for defamation
of character.”
The Misses Coppinger, unfortunately, were standing near at
the time, and were very naturally indignant at hearing their
father thus spoken of.

“The letter says true enough, I have no doubt,” observed Mr
Gilby, who had been dancing with one of the young ladies.
“If the son he speaks of is Silas Sleech, a more arrant rogue
does not exist. I am very certain that he led that young
Harry Tryon purposely into all sorts of scrapes, and drove
him off at last to sea. Poor fellow! I don’t think I told you
what I know about him.”
His remarks were cut short by the confusion which ensued
in consequence of Mr Sleech’s behaviour. The letter he had
received, although sent in kindness, had completely
overcome him. Had he been in his usual state of composure
he would probably have put it in his pocket, and kept its
contents secret; but being already excited, having paid
constant visits to the refreshment-room in order to keep up
his spirits, it drove him beside himself. In vain his friends
tried to pacify him. He rushed round the room, exclaiming
again, “It is a lie! It is a base lie! My son a rogue! The heir
of Stanmore accused of forgery! It is impossible; it is
impossible! I defy any one to prove it.”
Thus the wretched man went on proclaiming his son’s
infamy and his own disgrace. Several of the guests, who
had been somewhat unwilling to come, on this ordered their
carriages. Even the most heartless felt that they could not
with propriety remain, and thus the greater part of the
company followed the example of the first.
The Misses Coppinger and their aunt got away immediately,
attended by Mr Gilby; and in a short time the gaily-
bedecked and highly-lighted rooms were deserted by all the
guests, while his children could with difficulty get their
father to his room, still but little pacified. The people said,
not without reason, that the balls at Stanmore were
destined to have a disastrous termination.

Management Accounting Information for Managing and Creating Value 7th Edition Smith Solutions Manual

Chapter Twenty Five.
A Journey, and what Befell the Travellers.—A Visit to
Windsor, and its result.
The days were long, the weather was fine, and Mabel and
her companion hoped by starting at dawn to reach London
at an early hour on the third day of their journey. They were
crossing Hounslow Heath, a part of the country, in those
days especially, and even in later years, notorious for the
number of robberies committed on travellers. In the far
distance were seen dangling in the air two objects, the
wretched remnants of humanity, suspended in chains,
intended as a warning to evil-doers, but having about as
much effect as scarecrows have generally on bold birds who
have discovered that they can do them no harm. Mabel
turned away her eyes to avoid the hideous spectacle. Paul
said nothing, but pulled out his pistols one by one, carefully
surveying their locks. Then restoring them to their holsters,
he continued trotting on at a rapid pace behind his young
mistress.
“We shall be in town, Miss Mabel, long before your
godfather sits down to his early dinner, I hope,” observed
Paul. “You might spare Beauty a little, for we shall have
some steep bits of road soon, and a steady pace will bring
us to our journey’s end, maybe, as soon as a rapid one.”
As Paul spoke he caught sight of three men crouching down
under some bushes a short distance ahead. Had he been
alone, he would have dashed forward and easily have
eluded them, should they prove to be footpads, as he
thought likely. He was afraid, however, should Mabel make
the attempt, that they might succeed in stopping her horse,

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