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Required information Dana Rand owns a catering company that prepares banquets and parties for both individual and business functions throughout the year. Rand's business is seasonal, with a heavy schedule during the summer months and the year-end holidays and a light schedule at other times. During peak periods, there are extra costs; however, even during nonpeak periods Rand must work more to cover expenses. One of the major events customers request is a cocktail party. Rand offers a standard cocktail party and has developed the following cost structure on a per-person basis. When bidding on cocktail parties, Rand adds a 15 percent markup to this cost structure as a profit margin. Rand is quite certain about estimates of the prime costs but is not as comfortable with the overhead estimate. This estimate was based on the actual data for the past 12 months presented in the following table. These data indicate that overhead expenses vary with the direct-labor hours expended. The $15 estimate was determined by dividing total overhead expended for the 12 months ($755,000) by total labor hours (49,400) and rounding to the nearest dollar. Rand recently attended a meeting of the local chamber of commerce and heard a business consultant discuss regression analysis and its business applications. After the meeting, Rand decided to do a regression analysis of the overhead data. The following (rounded) results were obtained. \begin{tabular}{lr} Intercept (a) & 52,000 \\ Coefficient (b) & 3 \end{tabular} equired: Explain the difference between the overhead rate originally estimated by Dana Rand and the overhead rate developed from the eqression method

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