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The following information is available for Des Plaines Company: Current assets $100,000 Current liabilities $175,000 Property, plant and Long-term liabilities 100,000 Equipment 150,000 Stockholders' equity 25,000 Other assets 50,000 Total liabilities and Total assets $300,000 stockholders' equity $300,000 Invested capital is defined as total assets less current liabilities. The after-tax operating income is $150,000. The after-tax cost of capital is 20%. The before-tax operating income is $200,000. What is the residual income (or the economic value added (EVA))?

Question 15 options:

	$175,000
	$120,000
	$90,000
	$125,000

The excess of actual overhead costs over the applied overhead costs is called ________.

Question 16 options:

	overestimated overhead
	underapplied overhead
	underbudgeted overhead
	overapplied overhead

The weighted-average method of process costing adds the cost of all work done in the current period to ________.

Question 17 options:

	the cost of the work done in the preceding period to the current period's ending work-in-process inventory
	the ending work-in-process inventory
	all costs estimated to be incurred in the next department
	the cost of the work done in the preceding period to the current period's beginning work-in-process inventory

In the immediate write-off approach to overhead variances, overapplied overhead is regarded as a(n) ________.

Question 20 options:

	addition to the cost of inventory
	increase in cost of goods sold
	decrease in cost of goods sold
	reduction to the cost of inventory

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