Question: Using simple regression to estimate factory overhead, an internal auditor finds that the line of best fit intersects at the y-axis at $5,000 for overhead

Using simple regression to estimate factory overhead, an internal auditor finds that the line of best fit intersects at the y-axis at $5,000 for overhead allocation. The slope of the line is 0.20. The dependent variable, represented by factory wages, amounts to $900,000 for the month. What is the estimated amount of factory overhead to be allocated for the month?

Multiple Choice

$230,000
$185,000
$180,000
$92,500
$65,000

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