Social Media, Inc. (SMI) has two services for users. Toot! 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		14,900			21,600			36,500
Revenues	$	1,950,000		$	2,000,000		$	3,950,000
Engineering hours		10,125			8,125			18,250
Engineering cost	$	830,625		$	948,750		$	1,779,375
Administrative costs							$	1,423,500

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.

	Toot!			TiX			Total
Engineering hours		10,125			8,125			18,250
Users		14,900			21,600			36,500
Engineering-hour related administrative cost							$	189,800
User-related administrative cost							$	1,233,700

a. What is 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 found in requirement (a), what is the profit for each service?