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Q27. Which of the following statements is true? a) Expenses reported income statements. b) Even if there is no change in units sold, selling price, increase its absorption costing net operating income from one year to the next just by producing c) When finished goods inventory decreases during a period, a manufacturing company's absorption costing net operating income for that period will usually be greater than its variable costing net operating income. d) Both A and B above. usually separated into variable and fixed elements in externally are not can or cost structure, a company more units Q28. Lakeside Nursing Home has two operating departments, Custodial Care and Rehabilitation. It also has a departments. The costs of the Housekeeping Department operating charged to the Housekeeping Department that serves the two are all variable and are operating departments on the basis of labor-hours. Data for September follow: Custodial Care Rehabilitation 1,000 Budgeted labor-hours.. Actual labor-hours. 3,000 1.600 3.200 The budgeted actual costs were $29,760. How much of the actual Housekeeping Department costs for September should not be charged to the operating departments for performance evaluation purposes? costs of the Housekeeping Department for September v were $24,000 and the a) $960 b) $5,760 c) S0 d) $1,240