The Wolfson Group (WG) provides tax advice to multinational firms. WG charges clients for (a) direct professional time (at an WG has just prepared the May 2017 bills for two clients. The hours of profess (Click the icon to view the hours by client.) Read the requirements 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: E (Click the icon to view the hourly rates.) Requirement 1. What amounts did WG bil to San Antonio Dominion and London 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 ata Table Requirements Data Table Но 1. What amounts did WG bil to San Antonio Dominion and London Enterprises for May 2017? Professional San Antonio Domini Professional Billing Rate per Hour Wolfson 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. Marvin Wolfson 450 Benson Amber Benson 210 Alonso Jesper Alonso 80 3. How would you determine whether professional labor costs or professional labor-hours is the more appropriate allocation base for WG's support services? Total Print Done Print Print Done
The Wolfson Group (WG) provides tax advice to multinational firms. WG charges clients for (a) direct professional time (at an WG has just prepared the May 2017 bills for two clients. The hours of profess (Click the icon to view the hours by client.) Read the requirements 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: E (Click the icon to view the hourly rates.) Requirement 1. What amounts did WG bil to San Antonio Dominion and London 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 ata Table Requirements Data Table Но 1. What amounts did WG bil to San Antonio Dominion and London Enterprises for May 2017? Professional San Antonio Domini Professional Billing Rate per Hour Wolfson 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. Marvin Wolfson 450 Benson Amber Benson 210 Alonso Jesper Alonso 80 3. How would you determine whether professional labor costs or professional labor-hours is the more appropriate allocation base for WG's support services? Total Print Done Print Print Done
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:WG has just prepared the May 2017 bills for two clients. The hours of professional time spent on each client are as follows:
E (Click the icon to view the hours by client.)
The Wolfson 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:
E (Click the icon to view the hourly rates.)
Read the reguirements.
Requirement 1. What amounts did WG bill to San Antonio Dominion and London 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
ata Table
Requirements
Data Table
Hours per Client
1. What amounts did WG bill to San Antonio Dominion and London 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
Professional
San Antonio Dominion
London Enterprises
Billing Rate per Hour
Professional
Wolfson
28
Marvin Wolfson
450
Benson
6
15
Amber Benson
210
41
56
Alonso
Jesper Alonso
80
75
75
Total
labor-hours is the more appropriate allocation base for WG's support services?
Print
Done
Print
Done
Print
Done
Norton
This network has weak password, and your
browsing and personal information may be
visible to others. Turn on Secure VPN to protect
your data.
Help Me Solve This
e Text Pages
Get More Help -
Turn On
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 2 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education