Overheads allocation

If for Construction Contract/Project or any other engineering project

allocation should be

1. for interest on bank loan/OD - specific to project or used for more than 2 project then according to constructed area or total value of contract

2. for other all admin expenses  - constructed area or total value of contract

means if one project is of Rs.12Cr & other is of 10Cr. & interest charges are Rs.20lakhs how should be the proportion of this amount?

if not specifically taken for single project then

considering project duration be same or not much different then  10.91 for 20 cr project and balance for another

this is general bifurcation , you can follow other process also  

sir how did you calculate this 10.91 amount?

20 / 22 X 12 = 10.91

means you have divided total cost of interest charges of Rs.20lakhs by  total project cost 10cr+12cr?