How to allocate a project overhead.
How to allocate a project overhead.
(OP)
How do I allocate project fixed overhead costs ie office rental, that are incurred throughout the period of the project.
As they are constant over time independant of the level and number of activities occurring I am not sure how to incorporate them into my cost reporting.
As they are constant over time independant of the level and number of activities occurring I am not sure how to incorporate them into my cost reporting.





RE: How to allocate a project overhead.
As there are a possible 173 hrs/mnth of work hrs, some of the other hrs can also be allocated as part of G&A cost.
TTFN
RE: How to allocate a project overhead.
TTFN
RE: How to allocate a project overhead.
Thanks for the advice but please clarify G&A cost
TTFN
RE: How to allocate a project overhead.
On top of this is added the "wrap", which includes the added benefits and G&A, which includes overhead.
In some companies, secretarial support is abd overhead cost, while in others, it's a direct cost. Other overhead costs include the allocated floorspace cost, as well as utilities, etc.
Other adders include cost of money and profit, although for simple contracts, there would be less transparency into the breakdown of costs.
TTFN
RE: How to allocate a project overhead.
RE: How to allocate a project overhead.
In some cases, where charging is done on a T&M basis, you would have to allocate G&A to each engineering hour and each dollar of material. It's up you whether you show this detail to your customer. Material gets wrapped to cover the overhead of maintaining a shipping and receiving, incoming inspection, procurement overhead, etc.
In many cases, such as when you have building or other types of contractors, you pay a flat fee for the job and you assume that G&A and all the other wraps are already included in the final amount.
RE: How to allocate a project overhead.
I am from Panama, and we use a software called OPUS. It should exist a wide variety of software in the US for these purposes.
Nigel