(LO 5-5) 5-36. Methods of Estimating Costs: Simple Regression Simple regression results from the data of Adriana Corporation (Exercise 5-33) are as follows: Equation: Overhead = $206,469 + ($45.83 x Machine-hours) Statistical data Correlation coefficient... R . .962 .925 Required Estimate overhead if the company expects the plant to operate at a monthly average of 9,000 machine-hours next year