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

Multiple Choice

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 for performance evaluation purposes?

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