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You Are Trying to Determine Whether Machine Hours or Direct

Question 82

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You are trying to determine whether machine hours or direct labour dollars would be the best cost driver for overhead costs.You run two regression analyses and obtain the following results:
Machine hours
 Multiple R .39429 R square .15547 Adjusted R square .14964 Standard error .44416\begin{array}{ll}\text { Multiple R } & .39429 \\\text { R square } & .15547 \\\text { Adjusted R square } & .14964 \\\text { Standard error } & .44416\end{array}
Direct labour dollars:
 Multiple R .89429 R square .79547 Adjusted R square .289647 Standard .44416\begin{array}{ll}\text { Multiple R } &.89429\\\text { R square } &.79547 \\\text { Adjusted R square } & .289647 \\\text { Standard }&.44416\end{array}
Which variable would be the best selection for a cost driver and why?

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Direct labour dollars would be the best ...

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