Answer the following questions in a Word or Excel file and submit to Canvas. Show all work.

  1. Management has studied work patterns in the housekeeping department and estimates the number of hours to be worked as follows. Hours worked = (1,500 per month) + (0.50 X RVUs).For the coming month, management expects relative value units (RVU) to be 5,800. What should budgeted labor for the month be?
  2. Last year, the price for thermometer covers in a pediatrician’s office was $0.05 each. This year, the covers cost $0.06 each. If the office purchased 10,000 thermometer covers this year, what is the price variance?

Please keep in mind that #2 requires for you to identify whether the answer is favorable or unfavorable; be sure to include that in your submitted response.  As you are aware, the authors made a distinction in the book with examples.