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 fixedit does not incur any variable manufacturing overhead costs. The predetermined overhead rate is based on a cost formula that estimated $2,894,000 of fixed manufacturing overhead for an estimated allocation base of 289,400 direct labor-hours. Wallis does not maintain any beginning or ending work in process inventory.

The companys beginning balance sheet is as follows:

Wallis Company
Balance Sheet
1/1/XX
(dollars in thousands)
Assets
Cash	$	840
Raw materials inventory		290
Finished goods inventory		410
Property, plant, and equipment, net		9,900
Total assets	$	11,440
Liabilities and Equity
Retained earnings	$	11,440
Total liabilities and equity	$	11,440

The companys standard cost card for its only product is as follows:

Inputs	(1) Standard Quantity or Hours	(2) Standard Price or Rate			Standard Cost (1) (2)
Direct materials	2 pounds	$	32.80	per pound	$	65.60
Direct labor	3.00 hours	$	13.00	per hour		39.00
Fixed manufacturing overhead	3.00 hours	$	10.00	per hour		30.00
Total standard cost per unit					$	134.60

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

Wallis Company
Income Statement
For the Year Ended 12/31/XX
(dollars in thousands)
Total variance adjustments