We will learn how an activity-based costing system divides the different types of overhead costs among the activity cost pools via an allocation process called first-stage allocation. The first-stage allocation in an ABC system is the process of assigning functionally organized overhead costs derived from a company's general ledger to the activity cost pools. Knowledge Check 01 Which of the following costs would not be allocated using ABC? multiple choice Marketing. Factory equipment depreciation. Direct labor. Factory utilities