In job cost accounting how are general and administrative costs allocated?

Different Accountants have different methods based upon the level of accurate job cost detail desired. We determine the number of products under construction during the chosen time period (typically a month), how many active and inactive weeks each product spent in production and allocated indirect costs accordingly.

In this case it is houses under construction. Active construction weeks get charged for both overhead and payroll costs and inactive (field work on hold) only overhead. Overhead and indirect payroll costs are determined for the month and applied to the jobs accordingly.