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Exercise 6-43 (Algo) Predetermined Overhead Rates and Product Profitability (LO 6-3, 4) Social Media, Inc....

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Exercise 6-43 (Algo) Predetermined Overhead Rates and Product Profitability (LO 6-3, 4) Social Media, Inc. (SMI) has two services for users. Tootl, 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. Toott Total 17,300 23,600 40,900 Revenues $ 2,150,000 $2,320,000 $4,470,000 Engineering hours 11, 225 9,225 20,450 Engineering cost $ 1,040,375 $1,158,000 $ 2,198,375 Administrative costs $1,758,700 Users 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 (), what is the profit for each service? Complete this question by entering your answers in the tabs below. Required A Required B 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. Predetermined overhead rate per user Required Required B)

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