Question
1)Property taxes are classified as variable expenses * True False 2)Depreciation expense under the units of activity method is classified as variable expense * True
1)Property taxes are classified as variable expenses * True False 2)Depreciation expense under the units of activity method is classified as variable expense * True False 3)If a company has utilities expense of $2,000 under the activity level of 2,000 units, knowing that the utility is a mixed expense with a fixed portion of $400, the estimated utility expense for 5,000 units is $4,400 * True False 4)ARC Company had a maintenance cost of $5,000 under an activity level of 3,000 units and of $2,150 under 1,000 units; the fixed potion of this mixed cost is $750 * True False 5)Leo Company paid salaries of $2,500 under the activity level of 500 units. The estimated salaries expense under the activity level of 1,300 units is $6,500 * True False
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