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 $2,924.000 of fixed manufacturing overhead for an estimated allocation base of 292.400 direct labor-hours. Wallis does not maintain any beginning or ending work in process inventory The company's beginning balance sheet is as follows: Wall Company Balance Sheet 1/1/xx (dollar in thousands Cash Raw materials inventory Finished goods Inventory 470 Property, plant, and equipment, net 10.500 Total aseta $12,220 ty Retained earnings $12,220 Total liabilities and equity 012, 220 Assets $ 900 350 Liabilities and The company's standard cost card for its only product is as follows: Thu Dirt material Direct labor Fixed manufacturing overhead Total standard cont per unit Standard Standard Quantity Price O Hours or Bate 2 pounds 34.00 per pound 3.00 hours 13.00 per hour 3.00 hours 10.00 per hour Standard Cont (L) (2) D68.00 39.00 30.00 5137.00 During the year Wallis completed the following transactions a. Purchased (with cash) 240,000 pounds of raw material at a price of $31.50 per pound. b. Added 220,000 pounds of raw material to work in process to produce 97000 units. c. Assigned direct labor costs to work in process. The direct laborers (who were paid in cash) worked 249,000 hours at an average cost of $16.00 per hour to manufacture 97.000 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 97000 units. Actual fixed overhead costs for the year were $2,750,000. Of this total. $1,360,000 related to items such as insurance, utilities, and salaried indirect laborers that were all paid in cash and $1,390,000 related to depreciation of equipment e. Transferred 97,000 units from work in process to finished goods. Sold (for cash) 94.000 units to customers at a price of $170 per unit g. Transferred the standard cost associated with the 94.000 units sold from finished goods to cost of goods sold. h. Paid $2,130,000 of selling and administrative expenses. 1. 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. 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 (.e., zero variance). Input all amounts as positive values.) Materials price variance Materials quantity variance Labor rate varianco Labor efficiency variance Budget variance Volumo variance Reo Reg 2 and 3 Rog Record transactions through for Wallis Company Compute the ending balances for Wallis Company's balance sheet. (Lintavorable variances and decreases in balance sheet accounts should be entered with a minussion. Enter your doors in thousands rounded to the nearest thousand) Wallis company Transaction Analysis For the Year Ended 12/31XX dollar in thousands Price Material Variance Quantity Variance Cash Raw Materials Work in Prish Finished Goods PPKE (net) Laborat Variance Labor Emcy Vauce Fixed Overhead Budget Variance Fixed Overhead Volume Variance Retained Earnings 1/1 0 0 1231 Reg1 Req6 Reg 1 Reg 2 and 3 Req 4 Prepare Wallis Company's income statement for the year. (Enter your dollars in thousands rounded to the nearest thousand.) Wallis Company Income Statement For the Year Ended 12/31/XX (dollars in thousands) Total variance adjustments