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A company performed regression analysis by collecting direct labour hours (independent variable) and manufacturing overheads (dependent variable). The following results were obtained using the regression
A company performed regression analysis by collecting direct labour hours (independent variable) and manufacturing overheads (dependent variable). The following results were obtained using the regression analysis: Intercept- 13500, Slope- 13.55 and Correlation coefficient- 0.931
In the upcoming year, the company decides to operate at a level that would need them to allocate 25000 direct labour hours per month. Based on the information available, calculate the estimated manufacturing overhead costs per month for the upcoming year.
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