Which of the following statements is true?

An activity-based costing system is generally easier to set up and run than a traditional cost system.

When combining activities in an activity-based costing system, activities should be grouped together at the same level. For example, batch-level activities should NOT be combined with unit-level activities.

Activity-based costing uses a number of activity cost pools, each of which is allocated to products on the basis of direct labor-hours.

In activity-based costing, a plantwide overhead rate is used to apply overhead to products.