The last step in activity-based costing is to assign overhead costs to
products, using overhead rates determined for each cost pool.
identify and classify the activities involved in the manufacture of specific products, and allocate overhead to cost pools.
compute the activity-based overhead rate per cost driver.
identify the cost driver that has a strong correlation to the activity cost pool.

Mandalay hotel bases its budgets on guest-days. the hotel's static budget for august appears below: budgeted number of guest-days 4,300 budgeted variable costs: supplies (@$9.60 per guest-day) $ 41,280 laundry (@$9.40 per guest-day) 40,420 total variable cost 81,700 budgeted fixed costs: wages and salaries 57,190 occupancy costs 52,030 total fixed cost 109,220 total cost $ 190,920 the total cost at the activity level of 5,200 guest-days per month should be: