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The cross-sequential research design may be seen as:
Labor Rate Variance
The difference between the actual cost of direct labor and the expected (or standard) cost, based on the standard hours worked and standard labor rate.
Variable Overhead Rate Variance
The difference between the actual variable overhead incurred and the expected variable overhead based on standard cost.
Materials Price Variance
The difference between the actual cost of raw materials and the standard or expected cost, multiplied by the quantity of materials purchased.
Variable Overhead Rate Variance
The difference between the actual variable overhead incurred and the expected (or budgeted) variable overhead based on a standard rate.
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