DO IT! 1 Costing Systems Indicate whether the following statements are true or false. a. A traditional costing system allocates overhead using multiple overhead rates in each department. b. Activity-based costing allocates overhead costs in a two-stage process. c. Direct material and direct labour costs are easier to trace to products than overhead. d. As manufacturing processes have become more automated, more companies have chosen to allocate overhead on the basis of direct labour costs. In activity-based costing, an activity is any event action from natin