Indicate whether the following statements are true or false.
1. A traditional costing system allocates overhead by means of multiple overhead rates.
2. Activity-based costing allocates overhead costs in a two-stage process.
3. Direct material and direct labor costs are easier to trace to products than overhead.
4. As manufacturing processes have become more automated, more companies have chosen to allocate overhead on the basis of direct labor costs.
5. In activity-based costing, an activity is any event, action, transaction, or work sequence that incurs cost when producing a product.