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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
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:
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 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 Seattle Dominion and Dublin 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 + t Support allocation rate * Direct professional labor) - Cost per professional Complete the table below to determine the amounts that WG billed to Seattle Dominion and Dublin Enterprises for May 2017. Begin with Seattle Dominion Seattle Dominion Amount Direct Professional Support Costs Costs Requirements Billed to Client Myron Whitbold Alberta Bryant Joseph Anderson 1. What amounts did WG bill to Seattle Dominion and Dublin Enterprises for May 2017? 2. Suppose support services wore billed at $55 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 20177 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? Total Print Done Data Table Professional Hours per Client Seattle Dominion Dublin Enterprises 17 Professional Myron Whitbold Alberta Bryant Joseph Anderson 2 Billing Rate per Hour $ 480 140 60 Whitbold Bryant 3 25 Anderson 9 34 Total 45 45 Step by Step Solution
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