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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

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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 Credit Costs Hours $ 130,251 1,200 83,373 609 226,150 1,886 216,774 1,494 258,453 1,803 185,399 1,606 219,897 1,833 245,570 1,867 209,842 1,558 192,115 1,617 250,928 1,854 171,178 914 128,737 809 $2,518,667 19,050 $ 193,744 1,465 The controller's office has analyzed the data and has given you the results from the regression analysis: SUMMARY OUTPUT Regression Statistics Multiple R 0.9115513 R Square 0.830925708 Adjusted R Square 0.815555318 Standard Error 22,754.96587 Observations 13 ANOVA df F -54.0601571 SS MS 27,991,726,133 27,991,726,133 5,695,673,188 517,788,471.6 33,687,399,321 Significance F 1.4436E-05 Regression Residual Total 1 11 12 R Square Adjusted R Square Standard Error Observations 0.830925708 0.815555318 22,754.96587 13 ANOVA df F Significance F 1.4436E-05 1 -54.0601571 Regression Residual Total SS MS 27,991,726,133 27,991,726,133 5,695,673,188 517,788,471.6 33,687,399,321 11 12 Coefficients Standard Error t Stat P-value Lower 95% Upper 958 Intercept 33, 100.32024 22,741.85454 1.45548025 0.1734 7479 -16,954.1641383,154.8046 X Variable 1 109.6253458 14.90981739 7.352561263 1.4436E-05 76.80905896 142.441633 If the controller uses regression analysis to estimate costs, the estimate of the fixed portion of administrative costs is: Multiple Choice Fixed Cost = $110.14 Fixed Cost - $22.623.11. Fixed Cost $22,566.27. Fixed Cost = $33,100.32

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