Departmental overhead rates may not correctly assign overhead costs due to: Multiple Choice (8 02121 O difficulties associated with identifying cost pools for the first stage of the allocation process. O C) the high correlation between direct labor hours and the incurrence of overhead costs O overreliance on volume as a basis for allocating overhead costs where products differ regarding the number of units produced, lot size, or complexity of production. C ) the use of direct labor hours in allocating overhead costs to products rather than machine time or quantity of materials used