MonthUtility CostLabor HoursMachine HoursJan $2,527 4,1502,500Feb 2,515 4,0002,375Mar 2,654 4,3602,600Apr 2,593 4,2002,450May 2,455 4,0502,525June 2,509 4,1002,410July 2,557 4,2752,720Aug 2,588 4,2502,525Sept 2,540 4,0502,350Oct 2,707 4,5002,610Nov 2,731 4,6002,700Dec 2,697 4,3752,675Total 31,073 50,91030,4403.)Multiple RegressionLabor HoursMachine HoursR Square0.910.870.42Standard Error29.9633.3271.21Significance F000.024.) The best cost driver would have to be the set between labor and machine hours. The multiple regression has the highest R square and theresiduals show no sign of being part of a pattern, which tells me that the data is good. Standard Error for the multiple regression is also the lowestof the three, showing that it has the smallest distance between points. Despite the fact that the significance f is not the lowest on the multipleregression it is still very low and shows that the multiple regression between labor and machine hours would be the best choice for the data toexplain what the real cost driver is.