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! 17,300 $2,150,000 11, 225 $1,040,375 Tix 23,600 $2,320,000 9,225 $1,158,000 Total 40,900 $4,470,000 20,450 $2,198, 375 $1,758,700 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. Engineering hours Users Engineering-hour related administrative cost User-related administrative cost Toot! 11, 225 17,300 Tix 9, 225 23,600 Total 20,450 40,900 $ 229,040 $1,529,660 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? 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 th two es assuming SMI uses the proposed two-stage cost system to allocate administrative costs. (Round your answers to 2 decimal places.) Predetermined Overhead Rate 11.20 per engineering-hour Engineering-hour related administrative cost $ User-related administrative cost $ 37.40 per user Complete this question by entering your answers in the tabs below. Required A Required B Based on the rates computed in requirement (a), what is the profit for each service? (Do not round intermediate calculations.) Service Profit Toot! TIX