How to Accurately Allocate Overhead in Construction Job Costing | Listener Q&A
Автор: The Profit Constructors
Загружено: 2025-09-04
Просмотров: 74
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In this episode of the Construction Junction, host Tonya Schulte from The Profit Constructors answers a fantastic listener question from John in Texas about how to best calculate and allocate overhead (G&A or GS&A) in job costing.
Tanya explains various methods for allocating overhead — including percentage of labor, total direct costs, blended approaches, and even fixed dollar per labor hour — and shares when each is most effective depending on your business model and job type mix.
Whether you're using Foundation Software or another job costing system, Tonya emphasizes that consistency between estimating and reporting is key to maintaining reliable gross profit numbers and avoiding overhead recovery issues.
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