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Chapter 6 Class Problems ameldo9 as 6-13. Predetermined Overhead Rates and Product Profitability 2106-3.00) Social Media, Inc. (SME). 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. Toot TIX Total Users 9.000 15.000 24,000 Revenues $1.200.000 $800.000 $2.000.000 Engineering hours 10.000 6.000 16.000 Engineering cost $ 240,000 $360,000 $ 600.000 Administrative costs 180.000 300,000 $ 480.000 Required 0801000/2 hoco = 20 Per user = POHA a Compute the predetermined overhead rate used to apply administrative costs to the two services assuming 04. Act. Page 249 SMI uses the number of users to allocate administrative costs. b. Based on the rates computed in requirement (a), what is the profit for each service