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part A & part B Books and Brew (B) is a large city bookstore that sells books and music CDs, and also has a cafe.
part A
Books and Brew (B) 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 number of items sold as 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. Be's operating costs for 2019 were as follows: Purchasing department $493,000 Receiving department $400,000 Shell-stocking employee salaries $475,000 Cashiers and for employee salaries $149,000 2019 information about product lines is also available: CDs Cafe Books $3.863,000 $2,317,000 $1,750,000 Revenue Cost of merchandise Number of purchase orders placed Number of deliveries received Hours of shell stocking time Number of items sold 5808,000 $535,000 2,020 $2.741,000 2,710 1,440 1,720 13,900 14.100 119,000 11,600 271.000 117,000 REQUIRED (ROUND ALLOCATION RATES TO THE NEAREST CENT AND ALLOCATIONS TO THE NEAREST DOLLAR Part A [6 tries; 5 points] Using 8's single driver system to allocate its operating costs, how much was allocated to CDs in 2019 Submit An Incorrect. Tres 3/6 Previous Tres Part [6 tries, 5 points) FBB had used an activity-based costing system to allocate its operating costs in 2019, how much would have been allocated to Books for cashiers and floor employee salaries, use number of items sold as the cost driver; for the other th cost categories, it should be clear what the appropriate drivers are. Suat Anwer Tries 0/6 &
part B
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