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Walts Company manufactures only one product and uses a standard cost system. The company uses a predetermined plantwide ovethead rate that relles on direct labor-hours as the allocation base. All of the company's manufacturing ovethead costs are foced-it daes not incur any variable manufacturing overhead costs. The predetermined overhead rote is based on a cost formula that estimated $2.890,000 of fixed manufacturing overhead for an estimated allocatlon base of 289,000 direct labor-hours. Wallis does not maintain any beginning or ending work in process inventory The company's beginning balance sheet is as follows: The company's standard cost card for its only product is as follows: The company's standard cost card for its only product is as follows: During the year Wailis completed the following transactions: a. Purchased (with cash) 235,000 pounds of raw moterial at a pice of $30.50 per pound b. Added 217,500 pounds of taw matedal to work in process to produce 96,000 units c. Assigned direct labor costs to work in process. The direct laborers (who were pald in cash) worked 247,000 houis at an average cost of $16.00 per hour to manufacture 96.000 unsts. d. Applied fixed overhead to work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed to manufacture 96,000 units. Actual fored overtiead costs for the year were $2.745.000. Or this totat, $1,350,000 related to items such as insurance, utiities, and salaried inderect laborers that were all pald in cash and $1,395,000 related to depreciation of equipment. i. Transferred 96,000 units from work in process to linished goods. f. Sold (for cash) 93,000 units to customers at a price of $170 per unit. 9. Iransferred the standard cost assoclated with the 93.000 units sold from finished goods to cost of goods sold. h. Paid $2,125.000 of selling and administrative expenses h. Paid $2,125,000 of seling and administrative expenses. 1. Closed al standard cost vatlances to cost of goods sold Required: 1. Compute all direct materials, direct labor, and fixed overhead variances for the yeat 2. Record transactions a through for Wallis Compary. 3. Compute the ending balances for Wallis Company's batance sheet. 4. Prepare Wallis Compariy's income statement for the year. Complete this question by entering your answers in the tabs below. Compute all direct materiols, direct labor, and fixed overhead variances for the year. (Indicate the eflect of each variance by selecting "/ " for fovorable, "u" for unfovorable, and "None" for no effect (Ce, zero vartance). Input all amounts as nositive yalues.) Record transactions a through i for Walls Company. Compute the ending balances for Walis Company's balance sheet. (Unfavorabje variances and fecteases in balance sheet accounts should the enteied with a mints sygh. Enter your dellars in thealands rounded to the neareit thourand) Prepare Wallis Company's income statement for the year. (Enter your dollars in thousands rounded to the nearest thousand.)