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-it does not incur any variable manufacturing overhead costs. The predetermined overhead rate is based on a cost formula that estimated $2,891,000 of fixed manufacturing overhead for an estimated allocation base of 289,100 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 $ 810 Raw materials inventory 260 Finished goods inventory 380 Property, plant, and equipment, net 9,600 Total assets $11,050 Liabilities and Equity Retained earnings $11,050 Total liabilities and equity $11,050 The company's standard cost card for its only product is as follows: (1) Standard Quantity (2) Standard Inputs Direct materials Direct labor Fixed manufacturing overhead Total standard cost per unit or Hours Price or Rate 2 pounds $ 32.20 per pound 3.00 hours $ 3.00 hours 13.00 per hour $ 10.00 per hour Standard Cost (1) x (2) $ 64.40 39.00 30.00 $133.40