Question: Problem 1 Cost Allocation Books and Brew (BB) is a large city bookstore that sells books and music CD's, and also has a cafe. Currently,


Problem 1 Cost Allocation 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 2018 were as fol lows: Purchasing department $450,000 Receiving department Shelf-stocking employee salaries Cashiers and oor employee salaries 2018 information about 33's oroduct lines is also available: $3,751,000 $2,690,000 $828,000 Cost of merchandise $2,663,000 $1,997,000 $555,000 Number of purchase orders 2,780 2,500 1,880 placed Number of deliveries 1 330 1 690 1, 430 received Hours of shelf stocking 15 200 'W|'"" 14 000 Number of items sold 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 2018? I ubmitAnswer| Tries 0/5
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