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What's the best way to allocate overhead expenses on a New York construction project?

New YorkConstruction Accounting

How do you allocate overhead expense (G and A)? Do you base it on revenue or actual markup rate that each agency gives you

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Dec 2, 2019

Unfortunately, I'm not an expert on the ins and outs of construction accounting on public jobs. However, it sounds like these resources may be helpful: - What is the Difference Between Fringe, Overhead and G&A? - Overhead Versus G&A - Overhead or G&A - Where Does it Belong?

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Dec 11, 2019

Each project is different and may require a different amount of the overhead. Usually you would add up indirect costs like indirect materials or indirect labor first. Then you would compute the overhead allocation rate. For example, if you use indirect labor, you would divide total overhead by the number of the direct hours. The third step is to apply the overhead by multiplying the rate by the number of the direct labor hours of each project. Hope I understood your question correctly. Let me know if you have more questions, Elizabeth Boals

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