Can someon help with this question? Candoo company was building their own storag
ID: 2471243 • Letter: C
Question
Can someon help with this question?
Candoo company was building their own storage shed. The following costs were incurred:
$1,000,000
Portion of $1,000,000 fixed overhead that would
be allocated to asset if it were normal production
80,000
100,000
What amount of overhead should be included in the cost of the self-constructed asset?
$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-construction100,000
Explanation / Answer
amount of overhead included in the cost of the self-constructed asset is $180,000
fixed $80,000 + 100,000 variable = $180,000 answer
amount of overhead included in the cost of the self-constructed asset is $180,000
fixed $80,000 + 100,000 variable = $180,000 answer