Shown on the following page is a regression diagram prepared by an internal auditor setting forth the line of best fit for overhead and wages The line of best fit in this diagram is described by the formula y a bx Required a What is the slope of the line of best fit in numeric terms b When wages am...

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Shown on the following page is a regression diagram prepared by an internal auditor setting forth the

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Shown on the following page is a regression diagram prepared by an internal auditor setting forth the line of best fit for overhead and wages.

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The line of best fit in this diagram is described by the formula y = a + bx.
Required:

a. What is the slope of the line of best fit in numeric terms?

b. When wages amount to $176,251, how much is the estimated overhead (rounded to the nearest dollar)?

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Internal Auditing: Principles And Techniques

ISBN: 9780894131677

1st Edition

Authors: Richard L. Ratliff, W. Wallace, Walter B. Mcfarland, J. Loeboecke

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Question Posted: May 06, 2024 11:00 AM

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Shown on the following page is a regression diagram prepared by an internal auditor setting forth the

Question:

40 30 Overhead (000) 20 10 0 20 40 60 80 100 120 140 Wages (000)

Step by Step Answer:

Internal Auditing: Principles And Techniques

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