TB MC QU$.4-5($Static$)$ Which of the following...

Which of the following statements is true?

I. Direct labor is an appropriate allocation base for overhead when overhead costs and direct labor are not highly correlated.

II$.$ Product$-$level activities relate to specific products and typically must be carried out whenever a batch is run or a unit of the product is made.

III. Departmental overhead rates applied on the basis of a single activity measure will eliminate any distortions in unit costs due to product diversity.

Multiple Choice

Statements I and II are true.

Statements II and III are true.

All of the statements are true.

None of the statements are true.