For a Simple Regression Analysis Model That Is Used to Allocate

Multiple Choice

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 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) $65,000.
B) $180,000.
C) $230,000.
D) $92,500.
E) $185,000.