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

Multiple Choice

During self-construction of an asset by Mitchellson Company, the following were among the costs incurred: $\begin{array}{lr}\text { Fixed overhead for the year } & \$ 1,000,000 \\\text { Portion of } \$ 1,000,000 \text { fixed overhead that would } & \\\quad \text { be allocated to asset if it were normal production } & 60,000 \\\text { Variable overhead attributable to self-construction } & 55,000\end{array}$ What amount of overhead should be included in the cost of the self-constructed asset?

A) $ -0-
B) $ 55,000
C) $ 60,000
D) $115,000