You are talking about marginal profit for each additional service offered ine overtime. If the marginal revenue from offering the additional product/service is greater than the marginal cost of labor (overtime) plus other marginal costs, it will lead to more profit. The “allocated overhead cost” is a fixed cost that shouldn’t affect the decision (assuming you take any marginal depreciation into account in marginal costs).
Wether you make make more or less profit than regukar hours, that depends on how you allocated fixed costs, but what actaully matters is if it increases your total profit (marginal profit).
You are talking about marginal profit for each additional service offered ine overtime. If the marginal revenue from offering the additional product/service is greater than the marginal cost of labor (overtime) plus other marginal costs, it will lead to more profit. The “allocated overhead cost” is a fixed cost that shouldn’t affect the decision (assuming you take any marginal depreciation into account in marginal costs).
Wether you make make more or less profit than regukar hours, that depends on how you allocated fixed costs, but what actaully matters is if it increases your total profit (marginal profit).