The formula tries to capture the following: Furthermore, the formula only applies to direct, non-jump overcalls of an opening bid.  So even if the hand doesn't qualify, it could qualify as a weak jump overcall or as a reopening overcall.  However, the rules for intervening after both opps have bid are not covered in the formula.

Finally, I realize that this formula is rather complex and unwieldy for use at the table.  Maybe I can somehow simplify it or make it easier to remember.  A computer would handle it well.
 
OK, enough preamble, here goes:

The "Magic" number is 11 (another "rule of 11").  If your hand scores 11, then you will probably make the overcall.  12 would be automatic.  10 says pass (or consider a weak jump overcall if appropriate).
 
Examples (these were not what I tested the formula on - so they are new to me, too):

(p. 45 of Mike Lawrence's book - Ch 6: Quiz)
MPs, nv/nv, RHO deals and opens.  You hold:  AQJ8 42 AT865 83
RHO: 1D.   score:  10+1+1+0+1=13   bid 1S.  clear-cut according to ML.  At vul/nv score would be 11.5.  At IMPs vul/nv score would be 11 and I think I would pass.  Not sure about ML.
RHO: 1H.  score for 1S:  10+0+0+0+1=11    ML: might work out.
RHO: 1H.  score for 2D:  11+1+1-2+0=11     ML: dangerous
RHO: 1S.  score for 2D:  10+2+1-2+0=11     ML:  reasonable at MPs, almost acceptable at IMPs (would score 10).
 
(p. 47)
MPs, nv/nv.  You hold 72 KQ865 K65 A42.
RHO: 1C or 1D.  score for 1H:  13+1+0+0+1=15.   ML:  1H is easy at any game.  If we were vul/nv, would still score 13 at MPs, 12 at IMPs.
RHO: 1S.  score for 2H: 13+1+0-4+0=10    ML:  a dangerous overcall at MPs which could easily be wrong.  clear pass at IMPs (score: 9).
 
(p. 48)
MPs, nv/vul.  K62 J9763 4 AK87
RHO: 1C:  10+2+2+1+1=16    ML: 1H any vulnerability; IMPs, too (score 13).  The fit factor is overwhelming.
RHO: 1D:  10+1+0+1+1=13    ML:  1H.  but at vulnerable IMPs (score 10) best to pass
RHO: 1S:   10+1+0-1+0= 10   ML:  pass.