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 xedit does not incur any variable manufacturing overhead costs. The predetermined overhead rate is based on a cost formula that estimated $2,891,000 of xed manufacturing overhead for an estimated allocation base of 239,100 direct labor-hours. Wallis does not maintain any beginning or ending work in process inventory. The company's beginning balance sheet is as follows: Hallie Company Balance Sheet 1/1/11 (dollars in thousands) Assets Cash $ 310 Raw materials inventory 260 Finished goods inventory 300 Property, plant, and equipment, net 9,600 Total assets 511,050 Liabilities and Equity Retained earnings $11,050 Total liabilities and equity 511.059 The company's standard cost card for its only product is as follows: (11 (2} standard standard Standard Quantity Price Cost Inputs or Hours or Rate (1) I [2} Direct materials 2 pounds $ 32.20 per pound $ 64.40 Direct labor 3.00 hours $ 13.00 per hour 39.00 Fixed manufacturing overhead 3.00 hours 5 10.00 per hour 30.00 Total standard cost per unit 5133-43 During the year Wallis completed the following transactions: a. Purchased (with cash) 235,500 pounds of raw material at a price of $30.60 per pound. b. Added 217,750 pounds of raw material to work in process to produce 96,100 units. c. Assigned direct labor costs to work in process. The direct laborers (who were paid in cash) worked 247,200 hours at an average cost of $16.00 per hour to manufacture 96,100 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 96,100 units. Actual fixed overhead costs for the year were $2,745,500. Of this total, $1,351,000 related to items such as insurance, utilities, and salaried indirect laborers that were all paid in cash and $1,394,500 related to depreciation of equipment. e. Transferred 96,100 units from work in process to finished goods. f. Sold (for cash) 93,100 units to customers at a price of $170 per unit. g. Transferred the standard cost associated with the 93,100 units sold from finished goods to cost of goods sold. h. Paid $2,125,500 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 / 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. Req 1 Req 2 and 3 Req 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 (i.e., zero variance). Input all amounts as positive values.) Materials price variance Materials quantity variance Labor rate variance Labor efficiency variance Budget variance Volume variance Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Reg 4 Record transactions a through i for Wallis Company. Compute the ending balances 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.) Show less A Wallis Company Transaction Analysis For the Year Ended 12/31/XX (dollars in thousands) Fixed Fixed Material Work-in- Finished PP&E Materials Price Quantity Labor Rate Labor Overhead Overhead Retained Cash Raw Materials Process Goods (net) = Variance Variance Efficiency Variance Budget Volume Earnings Variance Variance Variance 1/1 a. C. d e g. h. 12/31 Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Req 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 adjustments $ 0