Pratt Ltd. assigns production overheads on a machine hour basis. Data relating to last month is shown below:

Budgeted machine hours: 400,000

Budgeted production overheads: 3,600,000

Actual machine hours: 397,500

Actual overheads: 3,585,500

Production overheads were: a) Under-absorbed by 14,500 b) Over-absorbed by 8,000 c) Over-absorbed by 14,500 d) Under-absorbed by 8,000