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:MonthAdministrative Costs Credit HoursJuly $129,301 250 August 82,613 115 September 225,580 1,392 October 216,394 1,000 November 258,263 1,309 December 184,449 1,112 January 219,137 1,339 February 245,000 1,373 March 209,462 1,064 April 191,925 1,123 May 249,978 1,360 June 170,418 420 July 128,167 315 Total $2,510,687 12,172 Average $193,130 936 The controller's office has analyzed the data and
has given you the results from the regression analysis:SUMMARY OUTPUTRegression StatisticsMultiple R0.9317157R Square0.868094147Adjusted R Square0.856102705Standard Error20,134.92395Observations13ANOVA dfSSMSFSignificance FRegression129,349,143,51429,349,143,51472.39281173.61909E-06Residual114,459,566,787405,415,162.4 Total1233,808,710,301 CoefficientsStandard Errort StatP-valueLower 95%Upper 95%Lower 95.0%Upper 95.0%Intercept96,647.0239812,641.665397.645118031.00291E-0568,822.90608124,471.141968,822.90608124,471.1419X Variable 1103.060769712.112831038.5083965413.61909E-0676.40060833129.72093176.40060833129.720931If the controller uses regression analysis to estimate costs, the estimate of the fixed portion of administrative costs is:
A. Fixed Cost = $103.56.
B. Fixed Cost = $19,943.58.
C. Fixed Cost = $96,647.02.
D. Fixed Cost = $12,521.26.
Answer: C
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