which statement is incorrect?

Multiple Choice Allocation of overhead for self-constructed assets is not complex. O If overhead is allocated, it should be done on a pro-rata basis. That is, if general overhead is allocated on the basis of labour-hours, and 8% of labour-hours are associated with self-construction, then at most, 8% of total general overhead should be included as a cost of the self-constructed asset. Overhead incurred during construction, if it is directly attributable to the construction or development activity, is included in the cost of self-constructed or self-developed assets. Many accountants contend that failure to allocate some portion of the general overhead to self-construction projects causes an undervaluation of self-constructed assets.