70.2K

Verified Solution

Link Copied!

Need help on this question

The Winter 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 Ontario 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. ) = Cost per professional i Requirements - X 1. What amounts did WG bill to Seattle Dominion and Ontario Enterprises for May 2017? 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. 3. How would you determine whether professional labor costs or professional labor-hours is the more appropriate allocation base for WG's support services? A Data Table Professional Billing Rato per Hour Mick Winter 450 230 Avery Benson Justin Abott The Winter 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 Ontario 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. ) = Cost per professional i Requirements - X 1. What amounts did WG bill to Seattle Dominion and Ontario Enterprises for May 2017? 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. 3. How would you determine whether professional labor costs or professional labor-hours is the more appropriate allocation base for WG's support services? A Data Table Professional Billing Rato per Hour Mick Winter 450 230 Avery Benson Justin Abott

Answer & Explanation Solved by verified expert

See Answer