Social Media, Inc. (SMI) has two services for users. Toot!, which connects helpers with students who are looking for helping 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		13,700			20,600			34,300
Revenues	$	1,850,000		$	1,840,000		$	3,690,000
Engineering hours		9,575			7,575			17,150
Engineering cost	$	734,000		$	852,375		$	1,586,375
Administrative costs							$	1,269,100

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		9,575			7,575			17,150
Users		13,700			20,600			34,300
Engineering-hour related administrative cost							$	171,500
User-related administrative cost							$	1,097,600

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.

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.)

	Predetermined Overhead Rate
Engineering-hour related administrative cost		per engineering-hour
User-related administrative cost		per user