InterceptX Variable 1Coefficients Standard Error39,107.78318109.6489042Multiple Choice21,181.7209614.38397725If the controller uses the high-low method to estimate costs, the cost equation for administrative costs is:Note: Round the variable cost per credit hour to 2 decimal places.Administrative Costs = $47,689.86+ ($103.42 x Credit-hours).Administrative Costs = $21,012.12 + ($111.82 × Credit-hours).Administrative Costs = $201.07 x Credit-hours.Administrative Costs = $52,649.t Stat1.846298677.622989270P-value0.0919076031.03057E-05Lower 95%-7,512.8703377.98998375Upper 95%Lower 95.0%85,728.4367 -7,512.87033141.307825 77.98998375Upper 95.0%85,728.4367141.307825 The College of Business at Northeast College is accumulating data as a first step in the preparation of next year's budget development. One cost that is being looked atclosely is administrative costs as a function of student credit hours. Data on administrative costs and credit hours for the past thirteen months are shown below:MonthJulyAugustSeptemberOctoberNovemberDecemberJanuaryFebruaryMarchAprilMayJuneJulyTotalAverageMultiple RR SquareAdjusted R SquareStandard ErrorObservationsANOVAAdministrativeCosts$ 130, 151RegressionResidualTotal83,293226,090216,734258,433185,299219,817245, 510209,802192,095250,828171,098128,677$ 2,517,827$ 193,679SUMMARY OUTPUTRegression StatisticsThe controller's office has analyzed the data and has given you the results from the regression analysis:Credit Hoursdf111121,1005571,8341,4421,7511,5541,7811,8151,5061,5651,80286275718,3261,4100.91696970.8408333740.82636368122,082.1400613SS28,335,634, 1925,363,830,00633,699,464,198MSF28,335,634, 192 - 58.1099654487,620,909.6Significance F1.03057E-05

Cost estimation is important concept used in cost accounting. High low method is a method used for…

Intercept X Variable 1 Coefficients Standard Error 39,107.78318 21,181.72096 109.6489042 14.38397725 Multiple Choice If the controller uses the high-low method to estimate costs, the cost equation for administrative costs is: Note: Round the variable cost per credit hour to 2 decimal places. Administrative Costs = $47,689.86+ ($103.42 x Credit-hours). Administrative Costs $21,012.12 + ($111.82 x Credit-hours). Administrative Costs = $201.07x Credit-hours. t Stat 1.84629867 7.622989270 Administrative Costs = $52,649. Lower 95% P-value 0.091907603 -7,512.87033 1.03057E-05 77.98998375 Upper 95% Lower 95.0% 85,728.4367 -7,512.87033 141.307825 77.98998375 Upper 95.0% 85,728.4367 141.307825

Intercept X Variable 1 Coefficients Standard Error 39,107.78318 21,181.72096 109.6489042 14.38397725 Multiple Choice If the controller uses the high-low method to estimate costs, the cost equation for administrative costs is: Note: Round the variable cost per credit hour to 2 decimal places. Administrative Costs = $47,689.86+ ($103.42 x Credit-hours). Administrative Costs $21,012.12 + ($111.82 x Credit-hours). Administrative Costs = $201.07x Credit-hours. t Stat 1.84629867 7.622989270 Administrative Costs = $52,649. Lower 95% P-value 0.091907603 -7,512.87033 1.03057E-05 77.98998375 Upper 95% Lower 95.0% 85,728.4367 -7,512.87033 141.307825 77.98998375 Upper 95.0% 85,728.4367 141.307825

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 38P: Friendly Bank is attempting to determine the cost behavior of its small business lending operations....

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