Gunnison Foods Has Two Operating Departments, Processing and Packaging

Multiple Choice

Gunnison Foods has two operating departments, Processing and Packaging. It also has a Housekeeping Department that serves the two operating departments. The costs of the Housekeeping Department are all variable and are allocated to the operating departments on the basis of the number of employees. Data for last year follow: The budgeted costs of the Housekeeping Department were $40,800 and the actual costs were $44,980.
-How much of the actual Housekeeping Department costs should not have been charged to the operating departments for performance evaluation purposes?

A) $4,180
B) $0
C) $18,460
D) $3,380