Estimating the amount of manufacturing overhead and the amount of the allocation base(s) used by a business is critical. If the estimates are off, that will lead to over or under applied overhead costs and will need to be adjusted at the end of the accounting period to equal actual manufacturing overhead costs. There are A LOT of overhead costs to estimate, both fixed and variable: utilities, rent, depreciation, property taxes, indirect materials, indirect labor, insurance just to name some. Be sure to read all directions prior to engaging with this activity. 1. For this discussion board, I would like you to discuss how accountants and managers at a company would go about estimating manufacturing overhead costs. What would be easier to estimate, fixed costs or variable costs? How would they estimate variable costs? You might consider the accountants and managers' knowledge of the cost structure of the business and how the business operates. Lastly, all things being equal, would managers rather MOH be under or over applied? Why