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! 9,500 $1,500,000 7,650 $ 439,125 Tix 17,100 $1,280,000 5,650 $ 558,375 Total 26,600 $2,780,000 13,300 $ 997,500 $ 798,000 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! 7,650 9,500 Tix 5,650 17, 100 Engineering hours Users Engineering-hour related administrative cost User-related administrative cost Total 13,300 26,600 $ 114,380 $ 683,620 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? Complete this question by entering your answers in the tabs below. Required A Required B 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.) Engineering-hour related administrative cost User-related administrative cost Predetermined Overhead Rate per engineering-hour per user Required A Required B Required B Based on the rates computed in requirement (a), what is the profit for each service? (Do not round intermediate calculations.) Profit Service Toot! Tix