Final answer:
The correct statement regarding the manufacturing overhead account is that it represents indirect production costs. Direct labor or raw materials, which are variable, do not fall into this category as manufacturing overhead is related to non-direct costs of production.
Step-by-step explanation:
The statement that is true regarding the manufacturing overhead account is B.
It represents indirect production costs. This account does not include direct costs like direct labor or raw materials, which are considered variable costs and tend to increase or decrease with output.
Instead, manufacturing overhead encompasses all the costs associated with the production process that are not directly traceable to the product.
These can include expenses like the salary of supervisors, depreciation of factory equipment, and factory utilities.
Understanding the distinction between direct and indirect costs is crucial for accurately calculating and assigning the costs of production.