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The Columbia Group provides financial advice to individuals and corporations They charge clients for (a) direct professional time and (b) support services. The professional advisor

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The Columbia Group provides financial advice to individuals and corporations They charge clients for (a) direct professional time and (b) support services. The professional advisor client billing rate is $200.00 per hour Monthly support service costs are as follows: Service Support Monthly $ Reception/administration 7,000 Associate advisors 18,000 The 125 clients are currently charged a standard support service fee of $240.00 monthly to cover support services costs plus a 20.0% markup. The receptionist and administration staff work is not directly related to specific clients. The associate advisors provide support for the professional advisors and work on specific client files as required. All associates combined work a total of 400 hours per month on client accounts. During June, they worked a total of 0.50 hours for Xenos Corp and 6.0 hours for Zeus Corp. The Columbia Group has prepared the June bills for these two client corporations owned by the same person Xenos Corp Zeus Corp Professional staff 4,000.00 12,000.00 Support services 240.00 240.00 Total 4,240.00 12,240.00 The owner of the two client corporations has questioned the June bill. She is wondering why support services is the same when Xenos Corp and Zeus Corp used different amounts of associate services for the month. Required: Prepare more appropriate bills for June for the two clients using the activity-based approach for associate advisors. Round rates and amounts up to even dollars; zero decimal places. dtv WA 18

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