TB MC Qu. 5-60 (Algo) The College of Business at Northeast College... The College of Business at Northeast College is accumulating data as a first step in the preparation of next year's budget development One cost that is being looked at closely is administrative costs as a function of student credit hours. Data on administrative costs and credit hours for the past thirteen months are shown below Month July August September October November December January February March April May June July Total Average Administrative Costs $ 129,751 82,973 225,850 216,574 258,353 184,899 219,497 245, 278 299,642 192,015 250,428 170,778 128,437 $2,514,467 $ 193,421 Credit Hours 780 349 1,626 1,234 1,543 1,346 1.573 1,607 1,298 1,357 1,594 654 549 15,430 1,187 TIL The controller's office has analyzed the data and has given you the results from the regression analysis: SUMMARY OUTPUT Regression Statistics Multiple R 8.9384221 R Square 0.865685215 Adjusted R Square 0.853474780 Standard Error 28, 299.67390 Observations 13 ANOVA F - 70.8971644 Significance F 4.98248E-6 Regression Residual Total df 1 11 12 SS MS 29,215,073,884 29, 215,073,804 4,532,844,363 412,076,760.3 33,747,918, 167 . Intercept X Variable 1 Coefficients 65,361.55084 107.8915644 Standard Error 16, 217.47628 12.81365592 t Stat 4.03031580 8.420845389 P-value Lower 95% Upper 95% Lower 95. ox Upper 95. 0.001980929 29,667.12621 101,055.9755 29,667.12621 101,855.9 4.00248E-06 79.68889790 136.094231 79.68889790 136.994 If the controller uses the high-low method to estimate costs, the cost equation for administrative costs is: The color office analyzed the data and has give you the rest from the son analysis SUMMARY OUTPUT Regression Statistics Multiple 0.930-6221 R Square 0.865685215 Adjusted R Square 0.853474780 Standard Eeror 20,299.67990 Observations 1 ANOVA F -70.8971656 Significance F 4.00243-06 Regression Residual Total df 1 31 12 SS NS 29,215,073,804 29, 205,073,804 4,532,844,363 412,076.760. 33,747.918.167 Coefficients Standard Error 65,361.55884 26,217.47628 107.8915644 12.81365592 Intercept X Variable 1 t Stet 4.0303158 8.420965389 P-value Lover 95% Lpper: 95% Lower 95.0 Upper 95.ex 0.001980929 29,667.12621 101,055.755 29,667.12621 101,055.6755 4.002486-06 79.68889790 136,09423379.68889790 136.94231 if the controller uses the high low method to estimate costs, the cost equation for administrative costs 90 PM 1. it the content uses the high-low method to estimate costs, the cost equation for adminstrative costs Mut Choice Administrativo Costs 5127412 Adrive Cats 86 + $603 48 Credit hour Admive Co-2013-cedes Active Conts $43.93312-3188 edit hour
