CoursHeroTranscribedText: Social Media, Inc. {SMI} has two services for users. Toot!, which connects tutors with...
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CoursHeroTranscribedText: 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 he used to buy, sell. or exchange event tickets- For the following year, Slv'll expects the following results. Tout! TiX TD'tal Users 16, ass 23, ms as, ass Revenues $2,166,666 $2,246,666 $4,346,666 Engineering hours 16,656 8,656 16,666 Engineering cost $ 685,8?5 $1,165,625 $2,666,566 Administrative costs $1,6T1,E66 The company is considering using a twostage 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 pase- Additional information follows. Toot! Tix Total Engineering hours 16,656 6,656 16,666 Users 15,?ss 23., ms as, ass Engineeringhour related administrative cost $ 218,666 Userrelated administrative cost $1,452,?66 Required: a. Compute the predetermined overhead rate used to apply the two administrative costs pools to the two services assuming Slv'll uses the proposed twostage cost system to allocate administrative costs. b. Based on the rates computed in requirement {3], what is the profit for each service
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