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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

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

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