Lakeside Nursing Home has two operating departments, Custodial Care and Rehabilitation. It also has a Housekeeping Department that serves the two operating departments. The costs of the Housekeeping Department are all variable and are charged to the operating departments on the basis of labor-hours. Data for September follow: The budgeted costs of the Housekeeping Department for September were $24,000 and the actual costs were $29,760.For performance evaluation purposes, how much of the actual Housekeeping Department costs for September should not be charged to the operating departments?
A) $960
B) $5,760
C) $0
D) $1,240

Question

Lakeside Nursing Home has two operating departments, Custodial Care and Rehabilitation. It also has a Housekeeping Department that serves the two operating departments. The costs of the Housekeeping Department are all variable and are charged to the operating departments on the basis of labor-hours. Data for September follow:  The budgeted costs of the Housekeeping Department for September were $24,000 and the actual costs were $29,760.For performance evaluation purposes, how much of the actual Housekeeping Department costs for September should not be charged to the operating departments?
A) $960 
B) $5,760 
C) $0 
D) $1,240

Quizplus · Accepted Answer

The Answer of Lakeside Nursing Home has two operating departments, Custodial Care and Rehabilitation. It also has a Housekeeping Department that serves the two operating departments. The costs of the Housekeeping Department are all variable and are charged to the operating departments on the basis of labor-hours. Data for September follow:  The budgeted costs of the Housekeeping Department for September were $24,000 and the actual costs were $29,760.For performance evaluation purposes, how much of the actual Housekeeping Department costs for September should not be charged to the operating departments?
A) $960 
B) $5,760 
C) $0 
D) $1,240

Lakeside Nursing Home Has Two Operating Departments, Custodial Care and Rehabilitation