Absorption Costing VS Marginal Costing

Dear John,

The budget for Bright’s first month of trading, producing and selling matchbox
boats was as follows:

Variable production cost of boats $ 45,000
Fixed production costs. $ 30,000
—————-
=Production costs of 750 boats = $ 75,000
(Less)Closing inventory of 250 boats ($25,000)
—————-
Production cost of 500 sold. $50,000
Variable selling costs. $ 5,000
Fixed selling costs $ 25,000
————–
= $ 80,000
Profit. = $ 10,000
——————-
Sales revenue $ 90,000

Q1) Assume that at the end of the first month unit variable costs and fixed costs
and selling price for the month were in line with the budget and any
inventory was valued at the same unit cost as in the above budget.
However, if production was actually 700 units and sales was 600 units, what would be the
reported profit using absorption costing?

a. $9,000
b. $12,000
c. $14,000
d. $15,000 ?

The Answer sheet gives the answer as $15,000. However I’m getting a different answer.

I’ve figured that the reason to the different answers is due to the Over/Under absorption of $2,000

As per my understanding of the wording of the question; (Budgeted= 750Units x $40 =$30,000) (Actual= 700Units x $40 =$28,000) Hence, being “Over-Absorbed” by $2,000

However, the Answer Sheet describes the answer as being “Under-Absorbed” by $2,000

Please be kind enough to unravel my confusion.

Much Appreciated!