Suppose that the printing department works on various jobs. All costs of the jobs are eventually allocated to the users, whether the consumers be the property-tax department, the city hospital, the city schools, or individual citizens who purchase some publications processed by the department. Compute Bardo’s wages for the week. How much, if any, of Bardo’s wages should be classified as indirect costs of particular printing jobs. Why?

. The city pension plan provides for the city to contribute to an employee pension fund for all employees at a rate of 20 percent of gross wages (not considering pension benefits). How much, if any, of Bardo’s retirement benefits should be classified as direct costs of particular printing jobs? Why?

For an expansion of this problem, see Problem 4.22.