Activity Type cost allocation

Hello,

I have an activity type for labor which i have setup in the routing of a BOM and have maitained the cost in KP26. When I check the itemization costs in the production order, it displays the cost of the labor. I issue and recieve the order, then go to KO88 to settle the order, but the labor cost does not get added to the cost of the finished goods. Anyboy have an idea why the activity costs do not get added to the finished goods?

Thanks in advance.

Scott