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 2014 were as follows:

Purchasing department	$472,000
Receiving department	$431,000
Shelf-stocking employee salaries	$468,000
Cashiers and floor employee salaries	$135,000

2014 information about BB's product lines is also available:

	Books	CD's	Cafe
Revenue	$3,756,000	$2,468,000	$778,000
Cost of merchandise	$2,733,000	$1,743,000	$555,000
Number of purchase orders placed	2,760	2,560	1,870
Number of deliveries received	1,460	1,670	1,440
Hours of shelf stocking time	15,700	13,100	10,000
Number of items sold	119,000	100,000	263,000

REQUIRED [ROUND ALLOCATION RATES TO THREE DECIMAL PLACES AND ALLOCATIONS TO THE NEAREST DOLLAR.] Part A (5 tries; 5 points) Using BB's single-driver system to allocate its operating costs, how much was allocated to CD's in 2014?

Part B (5 tries; 5 points) If BB had used an activity-based costing system to allocate its opearting costs in 2014, 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.