Sandler Company Manufactures Electronic Devices Which Cost Driver Should Be Chosen?
A) Number of Parts

Multiple Choice

Sandler Company manufactures electronic devices.The company is considering three cost drivers for measuring maintenance costs in the factory.The following cost functions have been estimated using each cost driver:
$\begin{array} { l }\text { Cost Driver }&\text { Cost Function }&R^2\\\text { 1. } X=\text { number of parts }&Y=\$ 20,000+\$ 5 X&R^2=0.40\\\text { 2. } X=\text { number of labor hours }&Y=\$ 13,000+\$ 10 X&R^2=0.95\\\text { 3. } X=\text { number of machine hours }&Y=\$ 15,000+\$ 7 X&R^2=0.30\\\end{array}$

Which cost driver should be chosen?

A) number of parts
B) number of labor hours
C) number of machine hours
D) none of the above