Madison, Inc. is deciding whether to use direct labor hours or machine hours as the best predictor for factory overhead costs. Regression analysis using each variable shows an R-squared value of 0.55 for direct labor hours and 0.71 for machine hours. Which of the following statements best describes which approach would result in the most accurate prediction of factory overhead costs? Responses Direct labor hours because this variable explains 55% of the variance in overhead costs. Direct labor hours because only 55% of the variance in overhead costs is not explained in the analysis. Machine hours because this activity is perfectly correlated with overhead costs. Machine hours because this variable explains 71% of the variance in overhead costs