Question: 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

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 $20,000. The slope of the line is 0.2. The independent variable, factory wages, amounts to $750,000 for the month. What is the estimated amount of factory overhead to be allocated for the month?

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