1. When the fixed costs of capacity are spread over the estimated activity of the period rather than the level of activity at capacity, the units that are produced must shoulder the costs of unused capacity. 4. When the predetermined overhead rate is based on the level of activity at capacity, an item called the Cost of Unused Capacity may appear to be treated as a period expense an income statements prepared for intemal management use. III. If the predetermined overhead rate is bosed on the estimated lievel of activity for the curront period, then products wil be charged only for the capacity that they use and will not be charged for the capacity they dont use. Musple Choice Ony statement is true. Only statement is is true. Summents 1 and F ve true Norie of the statements we trut