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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 Engineering cost Administrative costs Toot! 9,000 $ 1,200,000 10,000 $ 240,000 Required A Required B Tix 15,000 $ 800,000 6,000 $360,000 $ Total 24,000 $ 2,000,000 16,000 600,000 $ 480,000 Required: a. Compute the predetermined overhead rate used to apply administrative costs to the two services assuming SMI uses the revenue 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. Compute the predetermined overhead rate used to apply administrative costs to the two services assuming SMI uses the revenue to allocate administrative costs. Predetermined overhead rate 80%

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 Engineering cost Administrative costs Toot! 9,000 $ 1,200,000 10,000 $ 240,000 Required A Required B Tix 15,000 $ 800,000 6,000 $360,000 $ Total 24,000 $ 2,000,000 16,000 600,000 $ 480,000 Required: a. Compute the predetermined overhead rate used to apply administrative costs to the two services assuming SMI uses the revenue 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. Compute the predetermined overhead rate used to apply administrative costs to the two services assuming SMI uses the revenue to allocate administrative costs. Predetermined overhead rate 80%

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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es Required: a. Compute the predetermined overhead rate used to apply administrative costs to the two services assur 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! TIX S $ Profit 152,000 920,000
Transcribed Image Text:es Required: a. Compute the predetermined overhead rate used to apply administrative costs to the two services assur 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! TIX S $ Profit 152,000 920,000
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: Engineering cost Administrative costs: Toot! 9,000 $ 1,200,000 10,000 $ 240,000 TIX 15,000 $ 800,000 6,000 $360,000 $ $ Total 24,000 $ 2,000,000 16,000 600,000 480,000 Required: a. Compute the predetermined overhead rate used to apply administrative costs to the two services assuming SMI uses the revenue 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. 80% Required A Required B Compute the predetermined overhead rate used to apply administrative costs to the two services assuming SMI uses the revenue to allocate administrative costs. Predetermined overhead rate Required B >
Transcribed Image Text: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: Engineering cost Administrative costs: Toot! 9,000 $ 1,200,000 10,000 $ 240,000 TIX 15,000 $ 800,000 6,000 $360,000 $ $ Total 24,000 $ 2,000,000 16,000 600,000 480,000 Required: a. Compute the predetermined overhead rate used to apply administrative costs to the two services assuming SMI uses the revenue 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. 80% Required A Required B Compute the predetermined overhead rate used to apply administrative costs to the two services assuming SMI uses the revenue to allocate administrative costs. Predetermined overhead rate Required B >
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