The Walliston Group (WG) providestax 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 theirrates per professional hour are as follows:ProfessionalMax WallistonBilling Rate per HourS640Alexa Boutin220Jacob Abbington100WG has just prepared the May 2017 bills for two clients. The hours of professional time spent on each clientare as follows.Hours per ClientProfessionalWallistonAmsterdam EnterprisesSan Antonio Dominion26Boutin14AbbingtonTotal39705270

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Asked Feb 14, 2020
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Q.How would you determine whether professional labor costs or professional labor-hours is the more appropriate allocation base for WG’s support services?

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
Max Walliston
Billing Rate per Hour
S640
Alexa Boutin
220
Jacob Abbington
100
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
Walliston
Amsterdam Enterprises
San Antonio Dominion
26
Boutin
14
Abbington
Total
39
70
52
70
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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 Max Walliston Billing Rate per Hour S640 Alexa Boutin 220 Jacob Abbington 100 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 Walliston Amsterdam Enterprises San Antonio Dominion 26 Boutin 14 Abbington Total 39 70 52 70

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