Gia Company Has the Following Information Available: What Is

question 31

Multiple Choice

Gia Company has the following information available: What is the amount of Cash to be listed on the balance sheet?

• A)$0
• B)$100,000
• C)$1,000,000
• D)$2,000,000

---

Definitions:

Overapplied

A situation where the allocated manufacturing overhead cost exceeds the actual manufacturing overhead costs incurred, resulting in an apparent surplus.

Underapplied

A situation where the allocated manufacturing overhead is less than the actual overhead incurred.

Predetermined Overhead Rate

An estimated charge per unit of activity used to allocate manufacturing overhead costs to products, calculated before the accounting period begins based on expected costs and activity levels.

Total Costs Added

The total amount of direct materials, direct labor, and overhead costs incurred during a specific period for the goods produced.