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	Administrative Costs				Credit Hours
July		$	130,301		1,250
August			83,413		635
September			226,180		1,912
October			216,794		1,520
November			258,463		1,829
December			185,449		1,632
January			219,937		1,859
February			245,600		1,893
March			209,862		1,584
April			192,125		1,643
May			250,978		1,880
June			171,218		940
July			128,767		835
Total		$	2,519,087		19,412
Average		$	193,776		1,493

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

SUMMARY OUTPUT
Regression Statistics
Multiple R	0.9085201
R Square	0.825408732
Adjusted R Square	0.809536799
Standard Error	23,121.17056
Observations	13

ANOVA
	df	SS	MS	F	Significance F
Regression	1	27,800,900,364	27,800,900,364	-52.0042966	1.72718E-05
Residual	11	5,880,473,811	534,588,528.2
Total	12	33,681,374,175

	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%	Lower 95.0%	Upper 95.0%
Intercept	30,209.74624	23,570.69478	1.28166550	0.226316412	-21,669.00318	82,088.4957	-21,669.00318	82,088.4957
X Variable 1	109.5384452	15.18962175	7.211400458	1.72718E-05	76.10631318	142.970577	76.10631318	142.970577

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

• Administrative Costs = $12,418.40 + $111.80 Credit-hours.

• Administrative Costs = $39,096.14 + $103.40 Credit-hours.

• Administrative Costs = $26,868.

• Administrative Costs = $201.05 Credit-hours.