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 $ 129,178 251 August 82,312 45 September 225,565 1,461 October 216,305 936 November 258,312 1,356 December 184,642 1,080 January 218,850 1,385 February 245,313 1,343 March 210,090 1,000 April 192,034 1,174 May 249,600 1,362 June 169,958 441 July 127,749 360 Total $ 2,509,908 12,194 Average 193,070 938 The controller's office has analyzed the data and has given you the results from the regression analysis Regression Statistics Multiple R 0 9286956 R Square 0 862475539 Adjusted R Square 0 849973315 Standard Error 20,603 46887 Observations 13 Anova df SS MS F Significance F Regression 1 29,284,661,632 29,284,661,632 68 9857704 4 56465E 06 Residual 11 4,669,532,223 424,502,929 4 Total 12 33,954,193,856 Coefficients Standard Error t Stat P value Lower 95 Upper 95 Lower 95 0 Upper Intercept 99,167 43496 12,667 77983 7 82832006 8 02377E 06 71,285 83956 127,049 0304 71,285 83956 127,049 0304 X Variable 1 100 1091804 12 05297196 8 305767299 4 56465E 06 73 58076797 126 637593 73 58076797 126 637593 If the controller uses the high low method to estimate costs, the fixed cost portion of the cost equation for administrative salaries is

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Question: 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

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	$ 129,178	251
August	82,312	45
September	225,565	1,461
October	216,305	936
November	258,312	1,356
December	184,642	1,080
January	218,850	1,385
February	245,313	1,343
March	210,090	1,000
April	192,034	1,174
May	249,600	1,362
June	169,958	441
July	127,749	360

Total	$ 2,509,908	12,194
Average	193,070	938

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

Regression Statistics
Multiple R	0.9286956
R Square	0.862475539
Adjusted R Square	0.849973315
Standard Error	20,603.46887
Observations	13

Anova

	df	SS	MS	F	Significance F
Regression	1	29,284,661,632	29,284,661,632	68.9857704	4.56465E-06
Residual	11	4,669,532,223	424,502,929.4
Total	12	33,954,193,856

	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%	Lower 95.0%	Upper
Intercept	99,167.43496	12,667.77983	7.82832006	8.02377E-06	71,285.83956	127,049.0304	71,285.83956	127,049.0304
X Variable 1	100.1091804	12.05297196	8.305767299	4.56465E-06	73.58076797	126.637593	73.58076797	126.637593

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

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