Classification of Overtime Costs ‘This is an expansion of Problem 2-31. Suppose that the printing department gathers all of its indirect costs and applies them via a single overhead rate on the basis of, say, 300 percent of the directlabor cost of individual jobs. If overtime premium and some pension costs were regarded as direct-labor costs rather than overhead, would the overhead rate be higher or lower than 300 percent? Why? lop4