Cloudy Plc. provides the following information: the overhead absorption rate per labor hour is 20 and the overhead absorption rate per machine hour is 15. One unit of the product A developed by Cloudy Plc. requires 8 hours of labor and 2.5 hours of machine. During the year, Cloudy Plc. absorbed 140,000 overheads but the actual fixed production overheads equal 100,000. Considering this information, which of the following statements is true? O a. None of the answers is true. O b. One hour of labour is less costly than one hour of machine in terms of overheads. O c. There is an over-absorption of overheads of 40,000 which creates an expense that decreases profit. O d. Product A should be sold for a price larger than 197.5.