Social Media, Inc. (SMI) has two services for users. Toot!, which connects blank with students who are looking for blank 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		11,300			18,600			29,900
Revenues	$	1,650,000		$	1,520,000		$	3,170,000
Engineering hours		8,475			6,475			14,950
Engineering cost	$	557,250		$	676,125		$	1,233,375
Administrative costs							$	986,700

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		8,475			6,475			14,950
Users		11,300			18,600			29,900
Engineering-hour related administrative cost							$	137,540
User-related administrative cost							$	849,160

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?