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Requirements: 1. What amounts did WG bill to San AntonioSan Antonio Dominion and AckermanAckerman Enterprises for May 20172017? 2. Suppose support services were billed at

image text in transcribedRequirements:

1.

What amounts did WG bill to

San AntonioSan Antonio

Dominion and

AckermanAckerman

Enterprises for May

20172017?

2.

Suppose support services were billed at

$4545

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

20172017?

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 WG's support services?

The Wong 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). T professionals in WG and their rates per professional hour are as follows: 2 (Click the icon to view the hourly rates.) WG has just prepared the May 2017 bills for two clients. The hours of professional time spent on each client are as follows: (Click the icon to view the hours by client.) Read the requirements. Requirement 1. What amounts did WG bill to San Antonio Dominion and Ackerman Enterprises for May 2017? Determine the formula needed to calculate the total cost per professional for each client when WG allocates support costs at 30% of direct professional costs. Direct professional labor + ( Direct professional labor X Support allocation rate ) = Cost per professional Complete the table below to determine the amounts that WG billed to San Antonio Dominion and Ackerman Enterprises for May 2017. Begin with San Antonio Dominion. San Antonio Dominion 1 Data Table Direct Professional Support Costs Costs 68202046 L Amount Billed to Client Professional 8866 Manny Wong Manny Wong Avery Brown Jeremy Andover Billing Rate per Hour 620 190 80 1360 4 08 Avery Brown Jeremy Andover Total The Wong 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). T professionals in WG and their rates per professional hour are as follows: 2 (Click the icon to view the hourly rates.) WG has just prepared the May 2017 bills for two clients. The hours of professional time spent on each client are as follows: (Click the icon to view the hours by client.) Read the requirements. Requirement 1. What amounts did WG bill to San Antonio Dominion and Ackerman Enterprises for May 2017? Determine the formula needed to calculate the total cost per professional for each client when WG allocates support costs at 30% of direct professional costs. Direct professional labor + ( Direct professional labor X Support allocation rate ) = Cost per professional Complete the table below to determine the amounts that WG billed to San Antonio Dominion and Ackerman Enterprises for May 2017. Begin with San Antonio Dominion. San Antonio Dominion 1 Data Table Direct Professional Support Costs Costs 68202046 L Amount Billed to Client Professional 8866 Manny Wong Manny Wong Avery Brown Jeremy Andover Billing Rate per Hour 620 190 80 1360 4 08 Avery Brown Jeremy Andover Total

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