2-31 Overtime and Fringe Costs A city printing department had a flurry of work during a particular week. The printers' labor contract provided for payment to workers at a rate of 150 percent of the regular hourly wage rate for all hours worked in excess of 8 per day. Anthony Bardo worked 8 hours on Monday through Wednesday, 10 hours on Thursday, and 9 hours on Friday. His regular pay rate is $12.00 per hour. 1. 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 citi- zens 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? 2. The city pension plan provides for the city to contribute to an employee pen- sion fund for all employees at a rate of 20 percent of gross wages (not consider- ing 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.