The Following Information Was Taken from a Computer Printout Generated

question 15

Multiple Choice

The following information was taken from a computer printout generated with the least-squares method for use in estimating overhead costs: $\begin{array}{lr}\text { Slope } & 45 \\\text { Intercept } & 5,700 \\\text { Correl ation coefficient } & 72 \\\text { Activity variable } & \text { Direct labour hours }\end{array}$

• A)Overhead = £5,700 - £45X.
• B)Overhead = £5,700 + £45X.
• C)Overhead = £5,700 + (£45 *0.72).
• D)Overhead = £5,700 * 0.72.

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