The Whitbold 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:

$($Click the icon to view the hourly rates.$)$

WG has just prepared the May $2020$ 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 Springfield Dominion and Bejing Enterprises for May $2020?$

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.

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Requirements

Data table

Data table

What amounts did WG bill to Springfield Dominion and Bejing Enterprises for

May $2020?$

Suppose support services were billed at $$65$ 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 $2020?$ Comment on the

differences between the amounts billed in requirements $1$ and $2.$

How would you determine whether professional labor costs or

professional labor$-$hours is the more appropriate allocation base for WG$\text{'}$s

support services?