Please use the same format to answer the question.
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 Administrative costs Toot! 13,700 $1,850,000 9,575 $ 734,000 Tix 20,600 $1,840,000 7,575 $ 852,375 Total 34,300 $3,690,000 17,150 $1,586, 375 $1,269,100 The company is considering using a two-stage cost allocation system and wants to assess the effects on reported product profits. The company is considering using Engineering Hours and Users as the allocation base. Additional information follows. Toot! 9,575 13,700 Tix 7,575 20,600 Engineering hours Users Engineering-hour related administrative cost User-related administrative cost Total 17,150 34,300 $ 171,500 $1,097,600 Required: a. Compute the predetermined overhead rate used to apply the two administrative costs pools to the two services assuming SMI uses the proposed two-stage cost system to allocate administrative costs. b. Based on the rates computed in requirement (a), what is the profit for each service? Complete this question by entering your answers in the tabs below. Required A Required B Compute the predetermined overhead rate used to apply the two administrative costs pools to the two services assuming SMI uses the proposed two-stage cost system to allocate administrative costs. (Round your answers to 2 decimal places.) Toot! 9,575 13,700 Tix 7,575 20,600 Engineering hours Users Engineering-hour related administrative cost User-related administrative cost Total 17,150 34,300 $ 171,500 $1,097,600 Required: a. Compute the predetermined overhead rate used to apply the two administrative costs pools to the two services assuming SMI uses the proposed two-stage cost system to allocate administrative costs. b. Based on the rates computed in requirement (a), what is the profit for each service? Complete this question by entering your answers in the tabs below. Required A Required B Compute the predetermined overhead rate used to apply the two administrative costs pools to the two services assuming SMI uses the proposed two-stage cost system to allocate administrative costs. (Round your answers to 2 decimal places.) Predetermined Overhead Rate per engineering-hour Engineering-hour related administrative cost User-related administrative cost per user The company is considering using Engineering Hours and Users as the allocation base. Additional information follows. Toot! 9,575 13,700 Tix 7,575 20,600 Engineering hours Users Engineering-hour related administrative cost User-related administrative cost Total 17,150 34,300 $ 171,500 $1,097,600 Required: a. Compute the predetermined overhead rate used to apply the two administrative costs pools to the two services assuming SMI uses the proposed two-stage cost system to allocate administrative costs. b. Based on the rates computed in requirement (a), what is the profit for each service? Complete this question by entering your answers in the tabs below. Required A Required B Based on the rates computed in requirement (a), what is the profit for each service? (Do not round intermediate calculations.) Service Profit Toot! TiX
