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:
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Analysis of Variance
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Analysis of Variance
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DF sum of squares mean square
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Regression 1 2.26588 2.26588
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Residual 145 56.60536 .19726
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F =15.45626 Signit F = .0000
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F = 26.69262 Signif F=.0000
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Variable in the equation
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variable Coefficients Std error t stat p - value
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Machine hrs 6.032 0413 3.166 .0493
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Which variable do you believe is the best selection for a cost driver? How did you choose the best cost driver?