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1. In activity-based costing, a separate activity rate (ie, predetermined overhead rate) is computed for each activity cost pool by dividing the estimated overhead cost in the activity cost pool by the total expected activity for the activity cost pool. TRUE FALSE 2. Under activity-based costing the flow of costs through the inventory and other accounts and the journal entries to record this flow are the same as under traditional costing except that under activity-based costing several predetermined overhead rates are used rather than just one. TRUE FALSE 3. In activity-based costing, Work in Process is credited when overhead is applied to products using activity rates TRUE FALSE 4. Batch-level activities are performed each time a batch of goods is handled or processed, regardless of the number of units in the batch. TRUE FALSE 5. Direct labor-hours should never be used as a measure of activity in an activity-based costing system. TRUE FALSE 6. Facility-level activities are activities that support specific products. TRUE FALSE 7. Product-level activities relate to specific products and typically must be carried out regardless of how many batches are run or units of product are made. TRUE FALSE The first stage allocation in activity-based costing is the process by which overhead costs are assigned to activity cost pools. TRUE FALSE 9. In activity-based costing, there are a number of activity cost pools, each of which is allocated to products using its own unique measure of activity. TRUE FALSE 10. Costs classified as batch-level costs should depend on the number of batches processed rather than on the number of units produced, the number of units sold, or other measures of volume. TRUE FALSE