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 invent The company's beginning balance sheet is as follows: Phoenix Company Balance Sheet (dollars in thousands) Assets Cash Raw materials inventory Finished goods inventory All other assets Total assets Liabilities and Equsty Retained earnings Total liabilities and equity $ 1,200 300 540 12,ee0 14,040 14,848 $14,848 The company's standard cost card for its only product is as follows: Standared Quantity or Hours Standard Price or Rate Standared Cost Inputs Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit 25,00 per pound 75.e 3 pounds 2.09 hours $ 16.00 per hour 2.00 hours 2.09 per hour 2.80 hours $ 10.00 per hour2.e 32.00 4,00 131.09