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 $2,886,000 of fixed manufacturing overhead for an estimated allocation base of 288,600 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 (dollars in thousands) AssetS Cash Raw materials inventory Finished goods inventory Property, plant, and equipment, net Total assets $ 760 210 330 9,100 $10,400 Liabilities and Equity Retained earnings Total 1iabilities and equity $10,400 $10,400 The company's standard cost card for its only product is as follows Standard Quantity or Hours Standard Price or Rate Standard Cost Inputs Direct materials Direct labor Fixed manufacturing overhead 3.00 hours $ 10.00 per hour Total standard cost per unit 2 pounds $ 31.20 per pound hour 62.40 45.00 30.00 $137.40 3.00 hours s 15.00 per