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

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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Q.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 2017?

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
Transcribed Image Text: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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