Exercise $3$: Absorption costing

The overhead absorption rate for product $x$ is $$10$ per machine hour. Each unit of product $x$ requires five machine hours. Inventory of product $x$ on $1\mathrm{.}1.$X$1$ was $150$ units and on $31\mathrm{.}12.$X$1$ it was $100$ units.

Required:

What is the difference in profit between results reported using absorption costing and results reported using marginal costing?

a$.$ The absorption costing profit would be $$2,500$ less

b$.$ The absorption costing profit would be $$2,500$ greater

c$.$ The absorption costing profit would be $$5,000$ less

d$.$ The absorption costing profit would be $$5,000$ greater