1. Using BB's single-driver system to allocate its operating costs, how much was allocated to CD's in 2017?

2. 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.

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 department Receiving department Shelf-stocking employee salaries Cashiers and floor employee salaries $467,000 $441,000 $458,000 $111,000 2017 information about BB's product lines is also available: Revenue Cost of merchandise Number of purchase orders placed Number of deliveries received Hours of shelf stocking time Number of items sold Books $3,839,000 $2,775,000 2,630 1,480 14,600 138,000 CD'S $2,351,000 $1,707,000 2,420 1,810 14,900 115,000 Cafe $809,000 $525,000 1,990 1,590 11,300 256,000 REQUIRED [ROUND ALLOCATION RATES TO THE NEAREST CENT AND ALLOCATIONS TO THE NEAREST DOLLAR