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

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

Name: Q.How would you determine whether professional labor costs or professi
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Description: 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) providestax advice to multinational firms. WG charges clients for (a) d

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 28E

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Variety Artisans has a bottleneck in their production that occurs within the engraving department. Arjun Naipul, the COO, is considering hiring an extra worker, whose salary will be $45,000 per year, to solve the problem. With this extra worker, the company could produce and sell 3,500 more units per year. Currently, the selling price per unit is $18 and the cost per unit is $5.85. Using the information provided, calculate the annual financial impact of hiring the extra worker.
LLC Service Inc. provides professional consultancy services to third-party firms. Professional staff are paid P150 per hour, and their time is billed at P500 per hour. The firm estimates the following total costs for the coming year:Estimated cost of professional staff P3,000,000 (20,000 hours of staff time)Estimated other costs (overhead) 4,000,000Total estimated costs P7,000,000ABC Corp. became a new client of the firm with job requirements of 100 hours of professional staff time. Present in a tabular format the total billing for the job.3. Compute for the total cost of the job in the previous item and the total profit which will be generated by LLC Service Inc. from performing the services requested by ABC Corp.
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LLC Service Inc. provides professional consultancy services to third-party firms. Professional staff are paid P150 per hour, and their time is billed at P500 per The firm estimates the following total costs for the coming year: Estimated cost of professional staff P3,000,000 (20,000 hours of staff time) Estimated other costs (overhead) 4,000,000 Total estimated costs P7,000,000 ABC Corp. became a new client of the firm with job requirements of 100 hours of professional staff time. Present in a tabular format the total billing for the job.
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