The Wolfson 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

Matthew Wolfson 500

Ashley Bryant 130

Jack Anderson 60

WG has just prepared the May 2017 bills for two clients. The hours of professional time spent on each client are as follows:

	Hours per Client
Professional	Seattle Dominion	Ackerman Enterprises
Wolfson	11	2
Bryant	2	6
Anderson	17	22
Total	30	30

1.	What amounts did WG bill to Seattle Dominion and Ackerman Enterprises for May 2017?
2.	Suppose support services were billed at $40 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 2017? 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?