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	$ 129,180	256
August	82,488	392
September	226,053	1,366
October	216,912	1,127
November	257,638	1,430
December	185,236	1,248
January	219,744	1,343
February	244,474	1,533
March	209,896	1,021
April	192,248	1,052
May	249,584	1,486
June	170,609	348
July	128,560	304
Total	$ 2,512,622	12,906
Average	193,279	993

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

Regression Statistics
Multiple R	0.8991096
R Square	0.808398062
Adjusted R Square	0.790979704
Standard Error	24,225.89655
Observations	13

Anova

	df	SS	MS	F	Significance F
Regression	1	27,238,160,063	27,238,160,063	46.4106928	2.90496E-05
Residual	11	6,455,834,698	586,894,063.5
Total	12	33,693,994,761

	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%	Lower 95.0%	Upper
Intercept	96,556.47873	15,707.30165	6.14723527	7.23566E-05	61,984.94091	131,128.0166	61,984.94091	131,128.0166
X Variable 1	97.4266060	14.30107051	6.812539377	2.90496E-05	65.95016202	128.903050	65.95016202	128.903050

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

• Cost = $106,059.43 + $90.29 Credit-hours.

• Cost = $193,279.

• Cost = $193,279.00 + $159.47 Credit-hours.

• Cost = $208.86 Credit-hours.