ences Wallis Company manufactures only one product and uses a standard cost system. The company uses a predetermined plantwide overhead rate that relies on direct labor-hours as the allocation base. All of the company's manufacturing overhead costs are fixed-t does not incur any variable manufacturing overhead costs. The predetermined overhead rate is based on a cost formula that estimated $2,885,000 of fixed manufacturing overhead for an estimated allocation base of 288,500 direct labor-hours. Wallis does not maintain any beginning or ending work in process inventory The company's beginning balance sheet is as follows: Hallis Company Balance Sheet 1/1/00 (dollers in thousands) Assets Cash Raw materials Inventory Finished goods Inventory Property, plant, and equipment, net Total assets Liabilities and Equity Retained earnings Total liabilities and equity $750 200 320 9,000 $10,270 110,170 $10,270 The company's standard cost card for its only product is as follows: Inputs Direct materials Direct labor Fixed manufacturing overhead Total standard cost per unit (5) (2) Standard Price or Rate Standard Quantity or hours 2 pounds 1 11.00 per pound $ 13.00 per hour 3.80 hours $ 10.00 per hour 3.00 hours Standard Cost (1) (2) $62.00 39.00 30.00 $131.00 During the year Wallis completed the following transactions a. Purchased (with cash) 232.500 pounds of raw material at a price of $30.00 per pound. b. Added 216,250 pounds of raw material to work in process to produce 95.500 units c. Assigned direct labor costs to work in process. The direct laborers (who were paid in cash) worked 246.000 hours at an average cost of $16.00 per hour to manufacture 95.500 units 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 95.500 units Actual foed overhead costs for the year were $2.742.500 Of this total $1,345.000 related to items such as insurance, utilities, and salaried indirect laborers that were all paid in cash and $1,397 500 related to depreciation of equipment e. Transferred 95.500 units from work in a