Social Media, Inc. (SMI) has two services for users. Too!, which connects teachers with students who are looking for teaching 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		13,100			20,100			33,200
Revenues	$	1,800,000		$	1,760,000		$	3,560,000
Engineering hours		9,300			7,300			16,600
Engineering cost	$	687,750		$	806,250		$	1,494,000
Administrative costs							$	1,195,200

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!			TiX			Total
Engineering hours		9,300			7,300			16,600
Users		13,100			20,100			33,200
Engineering-hour related administrative cost							$	162,680
User-related administrative cost							$	1,032,520

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?