The Following Table Shows the Total Sales, in Thousands, Since

question 91

Short Answer

The following table shows the total sales, in thousands, since a new DVD was released.
A. Estimate the point of diminishing returns.
B. Using your answer from part (A), predict the total possible sales for the DVD.

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Definitions:

Rate Variance

The difference between the expected standard cost and the actual cost incurred, calculated for direct labor rate, overhead rate, or material price.

Standard Direct Labor-Hours

The estimated hours required to produce a units based on standard efficiency and productivity levels.

Labor Efficiency Variance

The difference between the actual hours worked to produce a good or service and the standard hours expected, multiplied by the standard labor rate.

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process, often used as a basis for allocating overhead.