New Age Electronics manufactures surround sound systems and allocates overhead costs using direct-labor hours. They pay their assembly line workers $15 per hour. Unadjusted Cost of Goods Sold for the year was $598,500.

Estimated accounting information for the year is as follows:

Overhead costs $140,000

Direct materials $355,000

Direct labor costs (7,000 hours @ $15/hour) $105,000

Direct labor hours 7,000

Machine hours 8,000

Actual accounting information incurred for the year was as follows:

Direct materials $350,000

Direct labor (7,100 hours @ $15/hour) $106,500

Production Managers Salary $ 25,000

Customer 800# order line $ 2,000

Plant rent $ 75,000

Depreciation on plant and equipment $ 50,000

Marketing expense $ 20,000

Plant utilities $ 19,000

Indirect materials $ 1,000

Delivery expenses to customers $ 5,000

Depreciation on office equipment $ 5,000

Machine hours 7,900

What amount of overhead was allocated/applied?

Group of answer choices

$138,250

$170,000

$142,000

$140,000