1. 5-20. ALTERNATIVE ALLOCATION BASES FOR A PROFESSIONAL SERVICES FIRM. The Walliston Group (WG) provides tax advice to multinational firms. WG charges clients for (a) direct professional time (at an hourly rate) and (b) support services (at 30% of the direct professional costs billed). The three professionals in WG and their rates per professional hour are as follows:

• Required
• 1. What amounts did WG bill to San Antonio Dominion and Amsterdam Enterprises for May 2020?
• 2. Suppose support services were billed at $75 per professional labor-hour (instead of 30% of professional labor costs). How would this change affect the amounts WG billed to the two clients for May 2020? Comment on the differences between the amounts billed in requirements 1 and 2.
• 3. How would you determine whether professional labor costs or professional labor-hours is the more appropriate allocation base for WGs support services?

Include in your submission to this assignment your responses to the three prompts in the problem. Then include a few paragraphs in which you reflect on what you learned from completing this assignment. Finally include:

• An explanation of how to broad average under-costs or over-costs products or services.
• Distinguish between simple and activity-based costing systems.
• Compare activity-based costing systems and department costing systems

VG has just prepared the May 2020 bills for two clients. The hours of rofessional time spent on each client are as follows: VG has just prepared the May 2020 bills for two clients. The hours of rofessional time spent on each client are as follows