Total cost under absorption costing

under absorption costing the total cost of a product will include
1. direct costs only
2. variable costs only
3. all direct and indirect costs excluding a share of fixed overhead
4. all direct and indirect costs

Hello tutor,

The solution is (4), but for absorption costing we only include in the total cost of a product, all fixed and variable costs of production. After deducting these fixed and variable costs from revenue, we continue to deduct the fixed non-production overhead to get profit. But why the choice (3) is not correct?

Thank you tutor!