(Appendix 11B) Lakeside Nursing Home Has Two Operating Departments, Custodial

question 9

Multiple Choice

(Appendix 11B) 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.
-How much Housekeeping Department cost should be charged to Rehabilitation at the end of September?

• A) $19,840
• B) $9,920
• C) $9,600
• D) $7,440

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