Cost Allocation Problem

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 2017 were as follows: Purchasing departmentS467 Receiving department Shelf-stocking employees477,000 S423,000 salaries Cashiers and floor S110,000 employee salaries 2017 information about BB's product lines is also available: Books CD's $3,984,000 $2,462,000 $729,000 $2,760,000 $1,753,000$525,000 2,600 Cafe Revenue Cost of merchandise Number of purchase 2,600 1,990 orders placed Number of deliveries 1,400 1,660 1,560 received Hours of shelf stocking 15,500 13,100 11,800 time Number of items sold 111,000104,000 251,000 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 2017? Part B [6 tries; 5 points] If BB had used an activity-based costing system to allocate its operating costs in 2017, 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