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6-13 Alternative allocation bases for a professional services firm. The Wilmer Group (WG) provides tax advice to multinational firms. WG charges clients for (a) direct
6-13 Alternative allocation bases for a professional services firm. The Wilmer 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. Professional Bilfing Rale per Hour Mark Wilmer $500 Ashley Bennet 170 John Amesbury 70 WG has just prepared the May 2013 bills for two clients. The hours of professional time spent on each client are as follows. Hours per Client Professional San Antonio Dominion Amsterdam Enterprises Wilmer 21 Bennet Amesbury Total 55 4 11 30 41 55 1. What amounts did WG bill to San Antonio Dominion and Amsterdam Enterprises for May 2013? 2. Suppose support services were billed at $55 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 2013? Com- ment on the differences between the amounts billed in requirements 1 and 2. 1. What amounts did WG bill to San Antonio Dominion and Amsterdam Enterprises for May 2013?* Your answer This is a required question 2a. How would this change affect the amounts WG billed ot the two clients for May 2013? * Your answer 0 This is a required question 2b. Comment on the differences? Your answer O This is a required
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