Identifying which variable is believed to be the best

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Identifying which variable is believed to be the best selection for a cost driver and how such cost driver is believed.

Answer the question based on the following regressions for machine hours or direct labor dollars:

Analysis of Variance	Analysis of Variance
DF sum of squares mean square
Regression 1 2.26588 2.26588
Residual 145 56.60536 .19726

F =15.45626 Signit F = .0000	F = 26.69262 Signif F=.0000

Variable in the equation
variable Coefficients Std error t stat p - value
Machine hrs 6.032 0413 3.166 .0493

Which variable do you believe is the best selection for a cost driver? How did you choose the best cost driver?

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