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What is unallocated labor?

Updated: 4/28/2022
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15y ago

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Unallocated labor is labor that can not be directly allocated to a given project. For example, assume you have a shop with 9 employees (8 laborers and 1 shop foreman who manages the other employees). If you track the hours each of the 8 laborers spends on a given project, you can multiply those hours by their pay rate and allocate their labor cost to each project. However, since the shop foreman does not work directly on any given project, his wages would be unallocated labor.

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