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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
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! 11,900 $1,700,000 8,750 $ 599,375 Tix 19, 100 $1,600,000 6,750 718, 125 Total 31,000 $ 3,300,000 15,500 $ 1,317,500 $ 1,054,000 Required: a. Compute the predetermined overhead rate used to apply administrative costs to the two services assuming SMI uses the number of users 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 administrative costs to the two services assuming SMI uses the number of users to allocate administrative costs. Predetermined overhead rate per user Required A Required B > Required: a. Compute the predetermined overhead rate used to apply atministrative costs to the two services assuming SMI uses the numb users 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 Based on the rates computed in requirement (a), what is the profit for each service? Profit Service Toot! Tix
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