Answer:
Profit For Toot $ 780,000
Profit For TIX $ 140,000
Explanation:
The predetermined overhead rate= Administrative costs / Total Users
=$ 480,000/24,000= 20
Social Media, Inc. (SMI)
Toot! TiX Total
<em>Users 9,000 15,000 24,000 </em>
Revenues $ 1,200,000 $ 800,000 $ 2,000,000
<em>Engineering hours 10,000 6,000 16,000 </em>
Engineering cost $ 240,000 $ 360,000 $ 600,000
Administrative costs $ 480,000
Applying Rate
Administrative costs $ 180,000 $ 300,000 $ 480,000
Profit $ 780,000 $ 140,000 $ 920,000
