Required1. What amounts did WG bill to Winnipeg Dominion and Tokyo Enterprises for May 2018?2. Suppose support services were billed at $60 per professional labour-hour (instead of 30% ofprofessional labour costs). How would this change affect the amounts W/G billed to the two clients forMay 2018? Comment on the differences between the amounts billed in requirements 1 and 2.3. How would you determine whether professional labour costs or professional labour-hours are the moreappropriate allocation base for WG's support services?

5-22 EXPLAIN UNDERCOSTING AND OVERCOSTING OF SERVICES. The Wolfson 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: LO 1 1. WG amount billed to Tokyo Enterprises, $7,322 Professional Billing Rate per Hour Myron Wolfson $800 Naomi Ku 144 John Anderson 96 WG has just prepared the May 2018 bills for two clients. The hours of professional time spent on each client are as follows: Hours per Client Professional Winnipeg Dominion Tokyo Enterprises Wolfson 15 IN KU Anderson 22 30 Total 40 40 W