Social Media, Inc. (SMI) has two services for users. Toot!, which connects tutors with students who...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Social Media, Inc. (SMI) has two services for users. Toot!, which connects tutors with students who are looking for tutoring services, and TIX, which can be used to buy, sell, or exchange event tickets. For the following year, SMI expects the following results. Users Revenues Engineering hours Engineering cost Toot! 9,000 Tix 15,000 Total 24,000 10,000 $ 240,000 $360,000 $ $ 1,200,000 $ 800,000 $2,000, ese 6,000 16,000 600,000 Administrative costs $ 480,000 Required: a. Compute the predetermined overhead rate used to apply administrative costs to the two services assuming SMI uses the engineering cost to allocate administrative costs. b. Based on the rates computed in requirement (a), what is the profit for each service? Social Media, Inc. (SMI) has two services for users. Toot!, which connects tutors with students who are looking for tutoring services, and TIX, which can be used to buy, sell, or exchange event tickets. For the following year, SMI expects the following results. Users Revenues Engineering hours Engineering cost Toot! 9,000 Tix 15,000 Total 24,000 10,000 $ 240,000 $360,000 $ $ 1,200,000 $ 800,000 $2,000, ese 6,000 16,000 600,000 Administrative costs $ 480,000 Required: a. Compute the predetermined overhead rate used to apply administrative costs to the two services assuming SMI uses the engineering cost to allocate administrative costs. b. Based on the rates computed in requirement (a), what is the profit for each service?
Expert Answer:
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-1259969478
6th edition
Authors: William N. Lanen, Shannon Anderson, Michael W Maher
Posted Date:
Students also viewed these accounting questions
-
Utilizd 3-5 scholary sources to answer the following questions: During the Great Recession, some private businesses were considered "too big to fail." Why were they considered too big to fail? Cite...
-
A company has beginning inventory of 19 units at a cost of $21 each on February 1. On February 3, it purchases 31 units at $23 each. 22 units are sold on February 5. Using the FIFO periodic inventory...
-
When originally purchased, a vehicle had an estimated useful life of 8 years. The vehicle cost $28,000 and its estimated salvage value is $1,500. After 4 years of straight-line depreciation, the...
-
Question 3 A bullish signal is most likely sent by B a low debt/equity ratio. A a high P/E ratio. B a high good beta and a low bad beta. Question 4 a bullish candlestick with no upper shadow. How to...
-
Which of the following cerebral areas is not correctly matched with its function? a. Occipital lobe-vision b. Parietal lobe-somatosensory area c. Temporal lobe-primary motor area d. Frontal...
-
What factors might cause an individual, employee, or firm to be cautious in their use of social networks?
-
A survey of Americans found that 55% would be disappointed if Facebook disappeared. You randomly select 500 Americans and ask them whether they would be disappointed if Facebook disappeared. Find the...
-
Fechter Corporation had the following stockholders equity accounts on January 1, 2014: Common Stock ($5 par) $500,000, Paid-in Capital in Excess of Par Common Stock $200,000, and Retained Earnings...
-
A company is using linear programming to decide how many units of each of its two products to make each week. weekly production will be x units of product X and y units of product Y. At least 50...
-
Several studies have reported lower participation in the science, technology, engineering, and mathematics (STEM) careers by female and minority students. A high school counselor surveys 240...
-
Grand Gimmicks Company produces a single product with a current selling price of $170. Variable costs are $130 per unit, and fixed costs per month average $6,240. Management is considering increasing...
-
Gracie Glynn has just become a product manager for Whoyser Products, Inc. and in charge of their new low cost pencil sharpener: the sharpener, will have a retail price of $1.00. Retail margins on the...
-
The two years data of 2019 & 2020 for Deepak Inc., operating in the textile industry is reported below. Analyse and comment on the following- a) Estimate the operating and financial risk of the...
-
what role does a healthcare manager play in strategic planning issues and how does stakeholders impact strategic planning? Explain
-
How do networks of influence operate within the realm of academia and research, and what implications do they have for the dissemination of knowledge and the advancement of scientific discourse?
-
Struggling to understand Job Costing vs Product costing as it relates to certain companies. I feel good about continuous (process) costing, but what would it be in this example: Toyota Motor...
-
How is metabolic engineering being utilized to enhance the production of biofuels and biochemicals? What role do gene editing technologies play in this advancement?
-
You have just begun your summer internship at Omni Instruments. The company supplies sterilized surgical instruments for physicians. To expand sales, Omni is considering paying a commission to its...
-
Roscoe Construction Company (RCC) is a company specializing in building roads and highways. As a part of its business, it receives supplies of aggregate from two suppliers: Toorak Gravel (TG) and...
-
Refer to the Business Application discussion of accounting choices. In the case of Tesco, managers made choices about the timing of revenues and expenses that led to fraud charges. In order to avoid...
-
Bens Corporation has three service departments (Repairs, HR, and IT) and two production departments (M1 and M2). The following usage data for each of the service departments for the previous period...
-
The following information for Great Oaks Furniture, a retail furniture and design firm, relates to Exercises 6 through 11. Calculate earnings per share, the price-eam-m'ssmjngs ratio, the gross...
-
The following information for Great Oaks Furniture, a retail furniture and design firm, relates to Exercises 6 through 11. Perform a vertical analysis of the balance sheets and income statements for...
-
The following information for Great Oaks Furniture, a retail furniture and design firm, relates to Exercises 6 through 11. Calculate asset turnover, accounts receivable turnover, days sales in...
Study smarter with the SolutionInn App