Excellent and comprehensive. These are the steps in my textbook:
1. Identify the major activities that pertain to the business
2. Accumulate overhead costs by activities
3. Identify the cost driver(s) that accurately measure(s) each activity
4. Assign overhead costs for each activity using cost driver rates
Is this the same steps you are doing but in a different order? And when it says "major activities", does that mean the "cost pools"? Or are they two completely different things? Thank you.