New Age Electronics manufactures surround sound systems and allocates overhead costs usingdirect-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 hours7,000

Machine hours8,000

Actual accounting information incurred for the year was as follows:

Direct materials$350,000

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

Production Manager's 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 hours7,900

What amount of overhead was allocated/applied?

Group of answer choices

$138,250

$170,000

$142,000

$140,000