1Activitybased costing uses activity rates to allocate mater

1.Activity-based costing uses activity rates to allocate materials and labor.

2.Product costs for high-volume products are commonly higher under conventional costing methods.

3.Under conventional costing methods, overhead costs are applied to products using some measure of volume such as direct labor-hours.

4.Product costs for low-volume products are commonly higher under activity-based costing.

Solution

In all these statements only first statement that is says activity based costing uses activity rates to allocate materials and labour because material labour is direct cost no need of allocation activity based costing is used for indirect cost like overhead (indirect material, machine setup etc)

So answer is 1) Activity-based costing uses activity rates to allocate materials and labor.