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! 9.000 $1,350,000 12.000 $ 240,00 TAX 14,750 $1,475,000 8.000 53875750 Total 23,750 $2,825.ee 20,000 $627,750 552775 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. Engineering hours Users Engineering-hour related sinistrative cost User related administrative cost Toot 12.000 9,000 TEX 8.00 14.50 Total 20,000 23.75 $ 140,00 $382.250 SMI thought that maybe there should be three types of administrative costs They felt that some of the costs in the User related pool were more related to revenue than to users Specifically, they revised their breakdown of administrative costs as follows Engineering-hour related administrative cost Us related administrative cost Revenue-related administrative cost Total aministrative cost 51,00 190,00 197,25 Required: Compute the predetermined overhead rate used to apply the three administrative costs pools to the two services assuming SMI uses the the proposed two stage cost system to allocate administrative costs b. Based on the rates computed in requirement ( what is the profit for each service Complete this question by entering your answers in the tabs below