Direct+Indirect+Overhead+Cost

Which of the following is/are classified as indirect labour?
 * Idle time payments to direct workers
 * Overtime premium paid at the specific request of a customer
 * Payments made to workers installing and testing new production machinery

Answer: Idle time payments to direct workers.

The overtime premium can be identified with a __specific order__ or cost unit, therefore it would be treated as a __direct labour__ cost of that order or unit. Otherwise the Overtime premium is indirect cost.

Payments made to workers installing new machinery would be classified as a capital cost of that machinery.

http://www.accountingformanagement.org/treatment-of-idle-time-overtime-and-fringe-benefit-costs/

Treatment of idle time:
Idle time means the amount of time the workers remain idle in a normal working day. The idle time is usually caused by a sudden fault in machine or equipment, power failure, lack of orders for the product, inefficient work scheduling, defective materials and shortage of raw materials etc. The __cost__ associated with idle time is treated as indirect labor cost and should, therefore, be included in manufacturing overhead cost. For example, the normal weekly working hours of a worker are 48 and he is paid @ $8 per hour. If he remains idle for 6 hours due to power failure, then the cost of 42 hours would be treated as direct labor cost and the cost of 6 hours (idle time) would be treated as indirect labor cost and included in manufacturing overhead cost. 

Treatment of overtime premium:
Overtime premium is the amount that is paid, for the overtime worked, in excess of the normal wage rate. Like idle time, overtime premium is also treated as indirect labor __cost__ and included in manufacturing overhead cost. For example, a worker normally works for 48 hours per week @ $8 per hour. In a particular week, if he works for 52 hours and company pays him $12 for every hour worked in excess of 48 hours, the allocation of the labor cost of the worker would be made as follows:  The amount of $16 is overtime premium and is a part of manufacturing overhead cost.