Which of the following statements is true?

1. Companies use three common approaches to assign overhead costs to productsplantwide overhead rate, departmental overhead rates, and activity-based costing. The most accurate of these three approaches is the plantwide overhead rate.

2. A departments overhead costs are generally caused by a variety of factors including the range of products processed in the department, the number of batch set-ups that are required, and the complexity of the products.

3. Rather than using a single allocation base such as direct labor-hours or machine-hours, in activity-based costing a company uses a number of allocation bases for assigning costs to products.

a. Statements I and II are true.

b. All of the statements are true.

c. Statements II and III are true.

d. None of the statements are true.