The Wright Group (WG) provides tax advice to multinational firms. WG WG has just prepared the May 2017 bills for two chis. The charges clients for (a) direct professional time (at an hourly rate) and (b) professional time spent on each client are as follows: support services (at 30% of the direct professional costs billed). The three (Click the icon to view the hours by client.) professionals in WG and their rates per professional hour are as follows: Click the icon to view the hourly rates) Read the requirements Requirement 2. Suppose support services were billed at $60 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 Determine the formula needed to calculate the total cost per professional for each client when WG allocates support costs at $60 per professional labor hour. (Abbreviations used: hrs. - hours.) Direct professional labor + ( Support cost per hour * Direct hrs, by professional = 'Cost per professional Complete the table below to determine what WG would have billed to Seattle Dominion and Ackerman Enterprises for May 2017 if support services were billed at $60 per professional labor-hour (instead of 30% of professional labor costs). Begin with Seattle Dominion Seattle Dominion Direct Amount Professional Support Billed to Costs Costs Client Mick Wright Ann Brown Jack Andover Total Enter any number in the edit fields and then click Check Answer Professional Billing Rate per Hour Mick Wright $620 Ann Brown 140 Jack Andover 80 Hours per Client Professional Seattle Dominion Ackerman Enterprises Wright 11 2 Brown 2 6 Andover 17 22 Total 30 30 00 % 0.0 % The Wright 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 0.0 % im 0 Requirement 1. What amounts did WG bill to Seattle Dominion and Ackerman 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 Support allocation rate * Direct professional labor) - Cont per professional Comploto the table below to determine the amounts that WG billed to Seattle Dominion and Ackerman Enterprises for May 2017. Begin with Seattle Dominion Seattle Dominion Ackerman Enterprises Direct Amount Direct Amount Professional Support Billed to Professional Support Billed to Costs Costs Client Costs Costs Client Mick Wright 5 6.820 $ 2,046 S 8,866 $ 1.240 $ 3725 1,612 Ann Brown 280 84 364 840 252 1,092 Jack Andover 1,360 408 1,768 1.760 528 2288 Total S 10.990 S 4,992 lico
