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During self-construction of an asset by Richardson Company, the following were among the costs incurred: Fixed overhead for the year $1,000,000 Portion of $1,000,000 fixed
During self-construction of an asset by Richardson 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 80,000
Variable overhead attributable to self-construction 100,000
What amount of overhead should be included in the cost of the self-constructed asset?
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