Question Completion Status: QUESTION 3 Activity-based costing involves a two-stage allocation in which overhead costs are first assigned to departments and then to jobs on the basis of direct labor hours. O True O False QUESTION 4 Designing a product is an example of a: O Unit-level activity. O Product-level activity -level activity QUESTIONS Direct labor-hours or direct labor cost should not be used as a measure of activity in an activity-based costing system. O True