Management has studied work patterns in the housekeeping department andestimates 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 pediatricians office was $0.05 each. This year, the covers cost $0.06 each. If the office purchased 10,000thermometer covers this year, what is the price variance?