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For a simple regression analysis model that is used to allocate factory overhead,

/in /by

For a simple regression analysis model that is used to allocate factory overhead, an internal auditor finds that

the intersection of the line of best fit for the overhead allocation with the y-axis is $5,000. The slope of the trend line is .20. The independent variable, factory wages, amounts to $900,000 for the month. What is the estimated amount of factory overhead to be allocated for the month

       a) $180,000
b) $230,000
c) $92,500
d) $185,000

 
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