Alternative allocation bases for a professional services firm;Alternative allocation bases for a professional services firm. The Walliston 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;Max Walliston $640;Alexa Boutin 220;Jacob Abbington 100;WG has just prepared the May 2011 bills for two clients. The hours of professional time spent on each client are as follows;Transtutors001_e259fcad-2b5e-46e1-b24c-c;Required;1. What amounts did WG bill to San Antonio Dominion and Amsterdam Enterprises for May 2011?;2. Suppose support services were billed at $75 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 2011? 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 supportservices?
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