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...

Q.How would you determine whether professional labor costs or professional labor-hours is the more appropriate allocation base for WG’s support services?

Extracted 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