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:

Professional & Billing Rate per Hour Max

Walliston $640

Alexa Boutin 220

Jacob Abbington 100

WG has just prepared the May 2011 bills for two clients.

The hours of professional time spent on each client are as follows:

Professionnal	San Antonio Dominion	Amsterdam Enterprises
WILMER	21	3
BENNET	4	11
AMESBURY	30	41
TOTAL	55	55

1. What amounts did WG bill to San Antonio Dominion and Amsterdam Enterprises for May ?

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? 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