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 $2,893,000 of fixed manufacturing overhead for an estimated allocation base of 289,300 direct labor-hours. Wallis does not maintain any beginning or ending work in process inventory The company's beginning balance sheet is as follows Wa11is Company Balance Sheet (dollars in thousands) Assets Cash Raw materials inventory Finished goods inventory Property, plant, and equipment, net Total assets Liabilities and Equity Retained earnings Total liabilities and equity $ 830 28:0 400 9.800 $11,310 $11.310 $11,310 The company's standard cost card for its only product is as follows: Standard Quantity or Bours Standard Price or Rate 2 pounds 32.60 per pound $65.20 Standard Cost Inputs Direct materials DLreet labor Pixed manufacturing overhead otal standard cost per unit 3.00 hour 14.00 per hour 3.00 hours S 10.00 per hour 42.00 30.00 $137.20 During the year Wallis completed the following transactions