Phoenix Company manufactures only one product and uses a standard cost system. The company uses a plantwide predetermined overhead rate that relies on direct labor-hours as the allocation base. The predetermined overhead rate is based on a cost formula that estimated $2,880,000 of fixed and variable manufacturing overhead for an estimated allocation base of 240,000 direct labor-hours. Phoenix does not maintain any beginning or ending work in process inventory. The company's beginning balance sheet is as follows: Page Phoenix Company Balance Sheet 1/1/XX (dollars in thousands) Assets Cash $ 1,200 Raw materials inventory 300 Finished goods inventory 540 All other assets 12,000 Total assets $14,040 Liabilities and Equity Retained earnings $14,040 Total liabilities and equity $14,040 The company's standard cost card for its only product is as follows: