Social Media, Inc. (SMI) has two services for users. Toot!, which connects tutors with students who...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 Toot! 9,000 Tix 15,000 Total 24,000 10,000 $ 240,000 $360,000 $ $ 1,200,000 $ 800,000 $2,000, ese 6,000 16,000 600,000 Administrative costs $ 480,000 Required: a. Compute the predetermined overhead rate used to apply administrative costs to the two services assuming SMI uses the engineering cost to allocate administrative costs. b. Based on the rates computed in requirement (a), what is the profit for each service? 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 Toot! 9,000 Tix 15,000 Total 24,000 10,000 $ 240,000 $360,000 $ $ 1,200,000 $ 800,000 $2,000, ese 6,000 16,000 600,000 Administrative costs $ 480,000 Required: a. Compute the predetermined overhead rate used to apply administrative costs to the two services assuming SMI uses the engineering cost to allocate administrative costs. b. Based on the rates computed in requirement (a), what is the profit for each service?
Expert Answer:
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-1259969478
6th edition
Authors: William N. Lanen, Shannon Anderson, Michael W Maher
Posted Date:
Students also viewed these accounting questions
-
A company has beginning inventory of 19 units at a cost of $21 each on February 1. On February 3, it purchases 31 units at $23 each. 22 units are sold on February 5. Using the FIFO periodic inventory...
-
When originally purchased, a vehicle had an estimated useful life of 8 years. The vehicle cost $28,000 and its estimated salvage value is $1,500. After 4 years of straight-line depreciation, the...
-
Question 3 A bullish signal is most likely sent by B a low debt/equity ratio. A a high P/E ratio. B a high good beta and a low bad beta. Question 4 a bullish candlestick with no upper shadow. How to...
-
Which of the following brain regions is not correctly matched to its function? a. Medulla oblongata-regulated heartbeat, breathing, and blood pressure b. Cerebellum-coordinated voluntary muscle...
-
What is a psychological contract? Describe your most recent job in terms of your contributions and the organization's inducements.
-
Assume HPC, Inc., began December with 60 units of inventory that cost a total of $720. During December, HPC, Inc., purchased and sold goods as follows: HPC, Inc., uses perpetual inventory. Under the...
-
Alice Johnson, Social Security number 222-23-3334, is single taxpayer and is employed as a secretary by State University of Florida. She has the following items pertaining to her income tax return...
-
The Johnson Repair Shop purchased a new truck at a cost of $35,000. The truck has a five year life expectancy and can be expected to provide service for 100,000 miles. At the end of the five years it...
-
Donald Chin works for Northwest Supplies. His rate of pay is $8.50 per hour, and he is paid 1 times the regular rate for all hours worked in excess of 40 per week. During the last week of January of...
-
What s is IPO underpricing? Explain in-depth and discuss the different theories on how and why this occurs. Create an example.
-
Your roommate drops a tennis ball from a third-story balcony. It hits the sidewalk and bounces as high as the second story. Draw a motion diagram, using the particle model, showing the ball 's...
-
Implement stack using a queue. Write a program for this problem. You can use just one queue. A queue is a First-In-First-Out (FIFO) kind of data structure. The element that is added to the queue...
-
In given list of ve and +ve numbers, write a program to separate ve numbers from the +ve numbers. //Sorts a given list by selection sort //Input: An array A[0..n-1] of orderable elements. //Output:...
-
Write a table equivalent to Table 5.1 supposing that the ideal impulse responses have an added phase term of \(-(M / 2) \omega\), for \(M\) odd. Table 5.1. Ideal frequency characteristics and...
-
Repeat Exercise 5.25 with the following order estimate (Kaiser, 1974): \[M \approx \frac{-20 \log _{10}\left(\sqrt{\delta_{\mathrm{p}} \delta_{\mathrm{r}}}...
-
There are 10 systems located at a site scheduled to perform a 20-hour mission. The system has an expected MTBF of 100 hours. What is the probability that at least 8 of these systems will operate for...
-
You have just begun your summer internship at Omni Instruments. The company supplies sterilized surgical instruments for physicians. To expand sales, Omni is considering paying a commission to its...
-
Roscoe Construction Company (RCC) is a company specializing in building roads and highways. As a part of its business, it receives supplies of aggregate from two suppliers: Toorak Gravel (TG) and...
-
Refer to the Business Application discussion of accounting choices. In the case of Tesco, managers made choices about the timing of revenues and expenses that led to fraud charges. In order to avoid...
-
Bens Corporation has three service departments (Repairs, HR, and IT) and two production departments (M1 and M2). The following usage data for each of the service departments for the previous period...
-
Use Lagrange's equation to derive the equations governing the rotations \(\theta_{1}, \theta_{2}\), and \(\theta_{3}\) for the springconnected triple pendulum system shown in Figure 5.41. 6000 k 6000...
-
A pendulum is suspended from a torsionally restrained disk, as in Figure 5.42, where \(\alpha\) is the angle of rotation of the disk, and \(\theta\) is the relative angle of the pendulum measured...
-
A rigid beam acts as a compound pendulum, suspended from an elastically restrained block that can undergo horizontal motion, as drawn in Figure 5.43. Derive the equations of motion using Lagrange's...
Study smarter with the SolutionInn App