Cost of the self constructed asset-amount of overhead, Accounting Basics

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Cost of the self constructed asset-amount of overhead

During self-construction of an asset by Jannero Pargo Company, the following were among the costs incurred:

Fixed overhead for the year $1,000,000
Portion of $1,000,000 fixed overhead that would
be allocated to asset if it were normal production 40,000
Variable overhead attributable to self-construction 35,000

What amount of overhead should be included in the cost of the self-constructed asset?

a. $ -0-

b. $35,000

c. $40,000

d. $75,000

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Accounting Basics: Cost of the self constructed asset-amount of overhead

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Accounting Basics: Cost of the self constructed asset-amount of overhead

Reference No:- TGS095142

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Accounting Basics: Cost of the self constructed asset-amount of overhead

Reference No:- TGS095142

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