accounting-During self-construction of an asset by Samuelson Company

QUESTION

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.0/msohtmlclip1/01/clip_image010.jpg”>During self-construction of an asset by Samuelson Company, the following were among the costs incurred:Fixed overhead for the year$1,000,000Portion of $1,000,000 fixed overhead that would be allocated to asset if it were normal production70,000Variable overhead attributable to self-construction50,000What amount of overhead should be included in the cost of the self-constructed asset? A.$ -0- B.$50,000 C.$120,000 D.$70,000

ANSWER:

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