Question: Please use the exact same words as the options below. The Wright Group (WG) provides tax advice to multinational firms. WG charges clients for (a)
Please use the exact same words as the options below.









The Wright 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: (Click the icon to view the hourly rates.) 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.) Read the requirements. Professional Mark Wright Alice Beckhem Jesper Alonso Billing Rate per Hour $ 500 160 70 Professional Wright Beckhem Hours per Client San Antonio Dominion Dublin Enterprises 23 3 5 12 32 45 Alonso 60 60 Total 1. What amounts did WG bill to San Antonio Dominion and Dublin Enterprises for May 2017? 2. Suppose support services were billed at $35 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 labor-hours is the more appropriate allocation base for WG's support services? San Antonio Dominion uses a higher proportion of Wright's time, which is more costly. This attracts the lowest support services charge when San Antonio uses a greater amount of professional labor time than Dublin. allocated on the basis of direct professional labor costs. Both clients use the same amount of professional labor time. Dublin uses a greater amount of professional labor time than San Antonio. San Antonio uses a greater amount of professional labor time than Dublin. Dublin Enterprises San Antonio Dominion less more an equal the highest the lowest
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