1. Anderson Company produces a variety of products, some in labor-intensive departments and some in heavily automated departments. Using a company-wide overhead allocation rate based on direct labor will result in overcosting some products and undercosting others.

True or False

2. Total quality control cost is the sum of voluntary and failure costs.

True or False

3. Most companies allocate facility-level activity costs directly to products for decision-making purposes.

True or False

4. In a highly automated manufacturing company, labor costs vary considerably with the volume of production.

True or False