The Business School at Eastern 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:

	Administrative	Credit
Month	Costs	Hours
July	$ 129,403	356
August	82,104	78
September	226,182	1,436
October	215,983	1,083
November	257,945	1,301
December	185,180	1,160
January	219,779	1,376
February	245,037	1,374
March	209,374	1,173
April	191,890	1,096
May	249,512	1,333
June	170,949	492
July	128,387	410
Total	$ 2,511,725	12,668
Average	193,210	974

The controller's office has analyzed the data and has given you the results from the regression analysis:

Regression Statistics
Multiple R	0.9376894
R Square	0.879261369
Adjusted R Square	0.868285130
Standard Error	19,261.05018
Observations	13

Anova

	df	SS	MS	F	Significance F
Regression	1	29,718,326,965	29,718,326,965	80.1058865	2.21306E-06
Residual	11	4,080,868,597	370,988,054.2
Total	12	33,799,195,561

	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%	Lower 95.0%	Upper
Intercept	89,167.71850	12,793.26545	6.96989513	2.36066E-05	61,009.93112	117,325.5059	61,009.93112	117,325.5059
X Variable 1	106.7686027	11.92920066	8.950189188	2.21306E-06	80.51260914	133.024596	80.51260914	133.024596

If the controller uses the high-low method to estimate costs, the cost equation for administrative salaries is:

Cost = $203.62 Credit-hours.

Cost = $73,822.40 + $106.10 Credit-hours.

Cost = $193,210.00 + $157.51 Credit-hours.

Cost = $193,210.