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Books and Brew (BB) is a large city bookstore that sells books and music CDs, and also has a cafe. Currently, BB uses a single
Books and Brew (BB) is a large city bookstore that sells books and music CDs, and also has a cafe. Currently, BB uses a single driver system to allocate its operating costs to each of its three product lines, using the the number of items sold as the single cost driver. But BB's management is concerned that this allocation system may not be providing the best information for making a variety of pricing decisions. BB's operating costs for 2019 were as follows: $464,000 Purchasing department Receiving department Shelf-stocking employee salaries $414,000 $491,000 $ 118,000 Cashiers and floor employee salaries 2019 information about BB's product lines is also available: Books CDs Cafe Revenue $3,711,000 $2,373,000 $799,000 Cost of merchandise $2,663,000 $1,624,000 $555,000 Number of purchase orders placed 2,730 2,510 1,820 Number of deliveries received 1,470 1,780 1,410 10,700 Hours of shelf stocking time 14,900 13,200 Number of items sold 128,000 101,000 264,000 REQUIRED [ROUND ALLOCATION RATES TO THE NEAREST CENT AND ALLOCATIONS TO THE NEAREST DOLLAR.] Part A [6 tries; 5 points] Using BB's single driver system to allocate its operating costs, how much was allocated to the cafe in 2019? 172,050 Submit Answer Incorrect. Tries 3/6 Previous Tries
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