Social Media, Inc. (SMI) has two services for users. Toot!, which connects tutors with students who...

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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 be used to buy, sell, or exchange event tickets. For the following year, SMI expects the following results. Users Revenues Engineering hours Total 25,500 Toot! Tix 8,900 $ 1,450,000 7,375 16,600 $1,200,000 5,375 $ 2,650,000 12,750 Engineering cost Administrative costs $ 402,500 $ 521,875 $ 924,375 $ 739,500 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 Based on the rates computed in requirement (a), what is the profit for each service? Service Profit Toot! TiX Lo search TO 26SILCH < Prev 6 of 8 Next > O Ei ? 77F AQI 59 A 0 14.E F 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 Total 25,500 Toot! Tix 8,900 $ 1,450,000 7,375 16,600 $1,200,000 5,375 $ 2,650,000 12,750 Engineering cost Administrative costs $ 402,500 $ 521,875 $ 924,375 $ 739,500 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 Based on the rates computed in requirement (a), what is the profit for each service? Service Profit Toot! TiX Lo search TO 26SILCH < Prev 6 of 8 Next > O Ei ? 77F AQI 59 A 0 14.E F

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