 Okay, let's look at a comprehensive activity-based caucine question similar to what you'll see on an exam. So, this company Vintage Fund, they manufacture roller skates and skateboards, and they have the annual production there of 900 roller skates and 1700 skateboards. If they use ABC, here is the cost pool. So, here's the data we need to know. They have three different activities. Here's the amount of overhead estimated for each one, and here's the total amount of activity that they're going to have for each one of these items. And then, here's the actual stuff that we have for skateboards and roller skates, and we're going to need that when we start allocating to skateboards or roller skates. So, the first step is we need to figure out what the activity rates are. And, actually, I don't even need to have this here. I have the question, what is the amount of overhead allocated to skateboards and the amount per skateboard? But the reality is when we do step one, we don't need to know what we're going to allocate to because we're using the total data. So, we're going to take the estimated overhead, divide that by the estimated allocation base, again in total, not for skateboards, and that comes up with an activity rate. Then, in step two, this is where we need the information for which product or which department or however we're going to allocate this. So, once we have the activity rates, and again in this table, all I've done is I've copied the activities down, I've copied the rates down, and now I'm putting in the actual allocation base for the skateboards, so 70 setups, 200 engineering hours, 4,500 direct labor hours. And then, I multiply them by the rates to come up with the total amount of overhead for each activity, and then we total it. That's an extra step we have to do in activity-based costing. So, I end up with $58,600 of total overhead allocated to skateboards. And if the question asks, how much is allocated per skateboard? Well, I'm going to look at my skateboard production of 1,700 units, and I'm just going to divide the total amount of overhead by the 1,700 units to come up with an overhead rate per skateboard of $34.47.