Note that only the overtime cost is treated this way . If workers are paid an 8 per hour regular rate and a 4 per hour over time premium , that only the 4 overtime premium is assigned to overhead. The 8 regular rate is still regarded as a direct labor cost. In certain cases, however,overtime is associated with a particular production run ; for example,a special order is raken when production ia at 100 percent capacity. In these special cases, it is appropriate to treat overtime premiums as a direct labor cost for that special order.