Books and Brew (BB) is a large city bookstore that sells books and music CD's, 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 cost of merchandise 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 2016 were as follows:

Purchasing department $498,000 Receiving department $410,000 Shelf-stocking employee salaries $464,000 Cashiers and floor employee salaries $133,000

2016 information about BB's product lines is also available:

(numbers go in order of: Books, CD's, Cafe)

Revenue $3,533,000 $2,219,000 $772,000 Cost of merchandise $2,521,000 $1,683,000 $535,000 Number of purchase orders placed 2,730 2,510 2,100 Number of deliveries received 1,490 1,750 1,640 Hours of shelf stocking time 14,100 14,100 10,000 Number of items sold 115,000 110,000 250,000

[ROUND ALLOCATION RATES TO THE NEAREST CENT AND ALLOCATIONS TO THE NEAREST DOLLAR.] Part A] Using BB's single-driver system to allocate its operating costs, how much was allocated to CD's in 2016? Part B] If BB had used an activity-based costing system to allocate its opearting costs in 2016, how much would have been allocated to Books? For cashiers and floor employee salaries, use number of items sold as the cost driver. For all other costs, the appropriate drivers should be clear.