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 be used to buy, sell, or exchange event tickets. For the following year, SMI expects the following results. Toot! TiX Total Users ?, 168 15,189 22, 208 Revenues $1,333,333 5 353,333 $2,263,333 Engineering hours 6,556 4,556 11,166 Engineering cost $ 386,8?5 $ 428,625 $ 721,560 Administrative costs $ 5??,200 The company is considering using a twostage cost allocation system and wants to assess the effects on reported product prots. The company is considering using Engineering Hours and Users as the allocation base. Additional information follows. Toot! Ti! Total Engineering hours 6,558 4,553 11,168 Users 7, 133 15,133 22, 233 Engineeringhour related administrative cost 5 86,539 Userrelated administrative cost 5 496,528 Required: 3. Compute the predetermined overhead rate used to apply the two administrative costs pools to the two services assuming SMI 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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