Books and Brw (BB) is a large city bookstor that sells books and music CDs, and also has a cafe. Prior to this yar, BB used a single-driver system to allocate its oprating costs to each of its three product lines, with the number of itms sold as the single cost driver. But BB's managment was concerned that this allocation systm was not providing the best information for making its many pricing dcisions. BB's budgted operating costs for 2021 were as follows:

The following is budgted 2021 information for BB's three product lines:

1. Using BB's traditional singl-driver system to allocate its operating costs in 2021, how much would be allocatd to Books?

2. If BB decided to use an activity-basd costing system to allocate its operating costs in 2021, how much would be allocated to the cafe? For cashirs and floor employee salaries, use the number of itms sold as the cost driver; for the other three cost categories, it should be clar what the appropriate drivers are ___

$467,000 $444,000 Purchasing department Receiving department Shelf-stocking employee salaries Cashiers and floor employee salaries $461,000 $101,000 Books CDs Cafe Revenue $3,909,000 $2,320,000 $776,000 Cost of merchandise $2,691,000 $1,642,000 $565,000 Number of purchase orders placed 2,740 2,430 1,940 Number of deliveries received 1,420 1,850 1,560 Hours of shelf stocking time 14,100 13,200 12,000 Number of items sold 137,000 115,000 253,000