What does Processing Option 9 mean for R31802A?

9. Standard Costing Mix Mode Processing Blank = Standard Cost Mode, cost method 07 1 = Set Mix Mode Processing, 07 parent cost method 02 component NOTE: Do Not Set This Option To A 1 If Using Detail Product Costing

The sentence with "Note:  Do Not Set This option to a 1 if using detail product costing."

I'm not quite sure how to interpret this comment.  We are setting up a standard costed item with A1, B1, C3, etc.broken out.  We issue 02 costed components to the work order.  We issue actual hours to the work order.   WIP breakdown on the GL shows Material, Labor, OH.  We then expect to get work order variances for material, labor, and OH.