Total

$

$15,940$

$

$10,120$

Both clients use the same amount of professional labor time. $$ San Antonio Dominion uses a higher proportion of Watson's time, which is $$ costly$.$ This attracts the highest support$-$services charge when allocated on the basis of direct professional labor costs

Requirement $3.$ How would you determine whether professional labor costs or professional labor$-$hours is the more appropriate allocation base for WG$\text{'}$s support services?

In order to determine whether professional labor costs or professional labor$-$hours is the more appropriate allocation base for support services, WG should choose the method of allocation that results in the greater total support service charges to the clients.

Final check