True or Fales for following questions:

1. When a company shifts from a traditional cost system in which manufacturing overhead is applied based on direct labor-hours to an activity-based costing system with batch-level and product-level costs, the unit product costs of high volume products typically decrease whereas the unit product costs of low volume products typically increase.

2. In the first-stage allocation in an ABC system, some costs may be allocated to a special cost pool that are not subsequently allocated to products or customers.

3. An activity rate of $512 per product design means that on average a product design consumes resources that cost $512.

4. In the second-stage allocation in activity-based costing, costs that were not allocated in the first stage are assigned to the company's most profitable products.

5. In activity-based costing, a product margin may exclude costs from some of the company's activity cost pools.