The Wilmer 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
Mark Wilmer	$500
Ashley Bennet	170
John Amesbury	70

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

	Hours per Client
Professional	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 2013?

2. Suppose support services were 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 2013? 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?

Check : 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.