Final answer:
Manufacturing overhead includes indirect labor and indirect materials, which are the costs necessary for production but not directly traceable to the end product. Hence, option B) is correct.
Step-by-step explanation:
Manufacturing overhead includes all the costs that are incurred during the production process, other than the direct costs of labor and materials. Specifically, it includes items such as indirect labor and indirect materials. These are costs that are not directly traceable to the end product, but are necessary for the production process.
Examples of indirect labor might be the wages of maintenance workers, while examples of indirect materials could be cleaning supplies used in the factory. Other costs that fall into the category of manufacturing overhead include depreciation of equipment, utilities, and rent for the manufacturing facilities.
The correct answer is B) Indirect labor and indirect materials. This captures the essence of manufacturing overhead, which encompasses a variety of costs that do not directly produce a product but are necessary for the manufacturing operations.