select all that apply which of the following statements are true? multiple select question. the magnitude of the overhead rate based on direct labor is of more concern when resources are used proportionately. allocating overhead on the basis of labor signals labor is more expensive than it really is. small errors in assigning labor to products are magnified when overhead rates are several hundred percent or more of labor costs. assigning overhead based on direct labor produces incentive to increase the labor content of products. need help? review these concept resources.