The actual amount of total manufacturing overhead incurred during the period is $105,000. Therefore, the correct option is 'a'.
Manufacturing overhead (MOH) is the total of all indirect costs incurred while producing a product.
It is included in the final product cost, along with direct material and direct labor costs.
Manufacturing overhead costs typically include equipment depreciation, salary and wages paid to factory personnel, and electricity used to power the equipment.
Manufacturing overhead should be included in the cost of finished goods in inventory and work-in-progress inventory on a manufacturer's balance sheet and in the cost of the goods income statement, according to GAAP (generally accepted accounting principles).
The production overhead is 2,000 hours multiplied by the actual $50 predetermined rate, or $100,000. If overhead is underapplied by $5000, the total overhead is $100,000 plus $5,000, or 105,000.
Hence, the correct option is 'a'.
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