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 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 2019 were as follows: Purchasing department $479,000 $432,000 Receiving department Shelf-stocking employee salaries Cashiers and floor employee salaries $452,000 $132,000 2019 information about BB's product lines is also available: Books CDs Cafe Revenue $3,768,000 $2,493,000 $854,000 Cost of merchandise $2,539,000 $1,810,000 $555,000 2,610 2,510 2,150 Number of purchase orders placed Number of deliveries received 1,540 1,520 1,750 Hours of shelf stocking time 14,200 14,100 10,100 Number of items sold 136,000 105,000 253,000 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 Books in 2019? 761,700 You are correct. Previous Tries Your receipt no. is 159-6527 Part B [6 tries; 5 points] If BB had used an activity-based costing system to allocate its operating costs in 2019, how much would have been allocated to CDs? For cashiers and floor employee salaries, use number of items sold as the cost driver; for the other three cost categories, it should be clear what the appropriate drivers are. 344062 Submit Answer Incorrect. Tries 4/6 Previous Tries