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: Custodial CareRehabilitationBudgeted labor-hours 3,000  1,000 Actual labor-hours 3,200  1,600 ?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. $1,240
B. $0
C. $5,760
D. $960


Answer: D

Business

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