Problem 6-57 (Algo) Predetermined Rates and Product Profitability: Two Stage Cost Allocation (LO 6-3, 4, 5) 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. 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. 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? 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.) Required A Required B Based on the rates computed in requirement (a), what is the profit for each service? (Do not round intermediate calculations.) \begin{tabular}{|l|l|} \hline Service & Profit \\ \hline Toot! & \\ \hline TiX & \\ \hline \end{tabular}