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 $2,892,000 of fixed manufacturing overhead for an estimated allocation base of 289,200 direct labor-hours. Wallis does not maintain any beginning or ending work in process inventory, The company's beginning balance sheet is as follows: Assets Cash Wallis Company Balance Sheet 1/1/XX (dollars in thousands) Raw materials inventory Finished goods inventory Property, plant, and equipment, net Total assets Liabilities and Equity Retained earnings Total liabilities and equity $ 820 270 390 9,700 $ 11,180 $ 11,180 $ 11,180 The company's standard cost card for its only product is as follows: Inputs Direct materials Direct labor Total standard cost per unit Fixed manufacturing overhead (1) (2) Standard Quantity Standard Price or or Hours Rate $ 32.40 per pound $ 15.00 per hour 2 pounds 3.00 hours 3.00 hours $ 10.00 per hour Standard Cost (1) x (2) $ 64.80 45.00 30.00 $ 139.80