During Self-Construction of an Asset by Jannero Pargo Company, the Following

Multiple Choice

During self-construction of an asset by Jannero Pargo Company, the following were among the costs incurred: $\begin{array} { l } \text { Fixed overhead for the year}&\$1,000,000\\ \text {Portion of \( \$ 1,000,000 \) fixed overhead that would }\\ \text { be allocated to asset if it were normal production }&40,000\\ \text {Variable overhead attributable to self-construction }&35,000\\\end{array}$
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