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 fixedit does not incur any variable manufacturing overhead costs. The predetermined overhead rate is based on a cost formula that estimated $2,890,000 of fixed manufacturing overhead for an estimated allocation 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:

Wallis Company Balance Sheet 1/1/XX (dollars in thousands)
Assets
Cash	$800
Raw Materials Inventory	250
Finished Goods Inventory	370
Property, plant, and equipment, net	9,500
Total Assets	$10,920
Liabilities and Equity
Retained Earnings	$10,920
Total Liabilities and Equity	$10,920

The company's standard cost card for its only product is as follows:

Inputs	(1) Standard Quantity or Hours	(2) Standard Price or Rate	Standard Cots (1) x (2)
Direct Materials	2 pounds	$32.00 per pound	$64.00
Direct Labor	3.00 hours	$14.00 per hour	42.00
Fixed Manufacturing Overhead	3.00 hours	$10.00 per hour	30.00
Total standard cost per unit			$136.00

During the year Wallis completed the following transactions:

a. Purchased (with cash) 235,000 pounds of raw material at a price of $30.50 per pound.

b. Added 217,500 pounds of raw material to work in process to produce 96,000 units.

c. Assigned direct labor costs to work in process. The direct laborers (who were paid in cash) worked 247,000 hours at an average cost of $16.00 per hour to manufacture 96,000 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 96,000 units. Actual fixed overhead costs for the year were $2,745,000. Of this total, $1,350,000 related to items such as insurance, utilities, and salaried indirect laborers that were all paid in cash and $1,395,000 related to depreciation of equipment.

e. Transferred 96,000 units from work in process to finished goods.

f. Sold (for cash) 93,000 units to customers at a price of $170 per unit.

g. Transferred the standard cost associated with the 93,000 units sold from finished goods to cost of goods sold.

h. Paid $2,125,000 of selling and administrative expenses.

i. Closed all standard cost variances to cost of goods sold.

Required:

1. Compute all direct materials, direct labor, and fixed overhead variances for the year.

2. Record transactions a through i for Wallis Company.

3. Compute the ending balances for Wallis Company's balance sheet.

4. Prepare Wallis Company's income statement for the year.

Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 and 3 Reg 4 Compute all direct materials, direct labor, and fixed overhead variances for the year. (Indicate the effect of each variance by selecting "F* for favorable, "U" for unfavorable, and "None" for no effect (1.e., zero variance). Input all amounts as positive values.) Materia's price variance Materials quantity variance Labor rate variance Labor efficiency variance Budget variance Volume variance Required: 1. Compute all direct materials, orect labor and foed overhead variances for the year 2. Record transactions through / for Walis Company 3. Compute the ending balances for Wallis Company's balance sheet. 4. Prepare Wallis Company's income statement for the year. Complete this question by entering your answers in the tabs below. R2 and 3 Record transactions through for walls company. Compute the ending siances for Wallis Company's balance sheet. Unfavorable variances and decreases in balance sheet accounts should be entered with a minus sign. Enter your dollars in thousands.) Walis Company Transaction Analysis For the Year Ended 12/31/XOX dollar in thousandu) Workin Finished Material Cash Rabald Raw Materials PPSE net Materials Price Variance Labor Rate Variance Emiciency SOAP Required: 1. Compute all direct materials, direct labor, and fixed overhead variances for the year. 2. Record transactions a through i for Wallis Company. 3. Compute the ending balances for Wallis Company's balance sheet. 4. Prepare Wallis Company's income statement for the year. Required: 1. Compute all direct materials, direct labor, and fixed overhead variances for the year. 2. Record transactions a through i for Wallis Company, 3. Compute the ending balances for Wallis Company's balance sheet. 4. Prepare Wallis Company's income statement for the year. Complete this question by entering your answers in the tabs below. Reg 1 Req 2 and 3 Reg 4 Prepare Wallis Company's income statement for the year. (Enter your dollars in thousands. Round your answers to the nearest whole dollar amount.) Wallis Company Income Statement For the Year Ended 12/31/XX (dollars in thousands) Total variance adiustments