Question

Question 2                                                                                                                  15 Marks

The Anderson Group provides counselling services at different suburbs in NSW. It 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 counsellors in The Anderson Group and their rates per counselling hour are as follows:

Counsellor	Billing Rate per Hour
Rob Mason	$320
Meghana Shreshtha	110
Daniel Jacob	50

The Anderson Group has just prepared the May 2019 bills for two clients. The hours of counselling time spent in two of the suburbs in NSW are as follows:

Counsellor	Paddington	Castle Hill
Mason	24 hrs	6 hrs
Shreshtha	6	14
Jacob	40	50
Total	70	70

1. What amounts did The Anderson Group bill to Paddington and Castle Hill suburbs for May 2019?

Client	Direct Counselling Time			Support Services		Amount billed to Client
	Rate per hour	No. of hours	Total	Rate	Total

                                                                                                      (4.5 marks)

2. Suppose support services were billed at $80 per counselling hour (instead of 30% of the direct professional costs), how would this change affect the amounts The Anderson Group billed to the two suburbs for May 2019? Show calculations.

Client	Direct Counselling Time			Support Services		Amount billed to Client
	Rate per hour	No. of hours	Total	Rate	Total

(4.5 marks)

3. Comment on the differences between the amounts billed in requirements (a) and (b).

____

Answer 1