The Business School at Eastern College Is Accumulating Data as a First

Question 57
Multiple Choice

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: img The controller's office has analyzed the data and has given you the results from the regression analysis: img If the controller uses regression analysis to estimate costs,the estimate of the variable portion of administrative salaries is: A)Cost = $8.63 × Credit-hours. B)Cost = $0.87 × Credit-hours. C)Cost = $103.56 × Credit-hours. D)Cost = $11.99 × Credit-hours.