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

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Accounting

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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. Toot! Tix 10,100 17,600 $ 1,550,000 $1,360,000 7,9255 ,925 $ 477,125 $ 596,250 Users Revenues Engineering hours Engineering cost Administrative costs 2/4 ints awarded Total 27,700 $2,910,000 13,850 $ 1,073,375 $ 858,700 Scored 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? 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 Toot! $ $ Profit 741,175 X 206,750 X Tix Required A Required B Compute the predetermined overhead rate used to apply administrative costs to the two services assuming SMI uses the engineering cost to allocate administrative costs. Predetermined overhead rate 80 %

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