Which Statement Best Describes Sequential Processing

question 69

Multiple Choice

Which statement best describes sequential processing?

• A) Only one process can be applied to a product in each department.
• B) Several sequences of production are applied to a product in the department.
• C) Units must pass through one process before they can be worked on in later processes.
• D) Subcomponents can be worked on simultaneously in different processes and then brought together in a final process for completion.

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Definitions:

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.