The following computer printout estimated overhead costs using multiple regression:

Regression Statistics
R Square		0.94
Standard Error		75
Observations		160
	Coefficients	Standard Error	t Stat	P-value
Intercept	1000	510.204	1.96	0.025
Setup hours	25	0.305	81.96	0.0001
# of parts	100	10.527	9.5	0.0001

The cost formula is:

Group of answer choices

Overhead = $25 Setup hours + $100 # of parts

Overhead = $1000 + $25 Setup hours + $100 # of parts

Overhead = $1000 0.94

Overhead = $510.204 + $0.305 Setup hours + $10.527 # of parts

Flag question: Question 11

Question 1110 pts

Petters Inc. uses labor hours to assign overhead cost. The following data are for the month of November:

Expected manufacturing overhead $500,000

Overhead assignment base labor hours

Expected labor hours 10,000

Manufacturing overhead incurred $650,000

Actual labor hours 12,000

The ending balances (before adjusting for the overhead variance) are as follows:

Cost of goods sold $200,000

Finished goods $200,000

Work-in-process $100,000

Required:

A. Compute the predetermined manufacturing overhead rate for the month of November.

B. Compute the under- or over applied manufacturing overhead (overhead variance) for Petters Inc. in the month of November.

C. If underapplied or overapplied overhead is material and is allocated to Work in Process, Finished Goods, and Cost of Goods Sold (based on ending account balances), what is the balance of finished goods after adjustment?