True-False: The following statements are either true or false. Place a (T) in the parentheses before each true statement and an (F) before each false statement. 1. ( ) Overhead costs are not directly related to production and can, therefore, be traced directly to units of product. 2. () The plantwide overhead rate method combines overhead costs into one overhead cost pool. 3. The departmental overhead rate method uses the same overhead rate for each department. 4. () Overhead costs can easily be explained by factors such as direct labor hours or machine hours. (hint: pg 671) 5. () A cost pool is a collection of costs that are related to the same or similar activity. 6. () Activity-based costing produces significant benefits in addition to providing more useful cost allocations. 7. () In ABC, the more activities that are tracked, the less accurately overhead costs are assigned. 8. () In ABC, overhead is allocated based on the actual level of activities used, multiplied by an activity rate for each cost pool.