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		$	129,351		300
August			82,653		141
September			225,610		1,418
October			216,414		1,026
November			258,273		1,335
December			184,499		1,138
January			219,177		1,365
February			245,030		1,399
March			209,482		1,090
April			191,935		1,149
May			250,028		1,386
June			170,458		446
July			128,197		341
Total		$	2,511,107		12,534
Average		$	193,162		964

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

SUMMARY OUTPUT
Regression Statistics
Multiple R	0.9321989
R Square	0.868994839
Adjusted R Square	0.857085279
Standard Error	20,062.49314
Observations	13

ANOVA
	df	SS	MS	F	Significance F
Regression	1	29,369,143,334	29,369,143,334	-72.9661575	3.48374E-06
Residual	11	4,427,539,941	402,503,631.0
Total	12	33,796,683,275

	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%	Lower 95.0%	Upper 95.0%
Intercept	93,173.64480	12,960.70790	7.18893177	1.77759E-05	64,647.31905	121,699.9705	64,647.31905	121,699.9705
X Variable 1	103.7058894	12.14067077	8.542023033	3.48374E-06	76.98445319	130.427326	76.98445319	130.427326

If the controller uses regression analysis to estimate costs, the estimate of the variable portion of administrative costs is:

• Variable Costs = $9.29 Credit hours.

• Variable Costs = $1.53 Credit hours.

• Variable Costs = $103.71 Credit hours.

• Variable Costs = $12.65 Credit hours.