Chapter To Problems Help Save &Exit Submit Check my work 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 points The company's beginning balance sheet is as follows Wallis Company Balance Sheet eBook Print References (dollars in thousands) Assets Cash Raw materials inventory Finished goods inventory Property, plant, and equipment, net Total assets $830 400 9, 800 $11,310 Liabilities and Equity Retained earnings $11,310 $11,310 Total liabilities and equity The company's standard cost card for its only product is as follows: Standard Quantity or Hours Standard Price or Rate 2 pounds 32-60 per pound 65.20 14.00 per hour Standard Cost Inputs Direct materials Direct labor 3.00 hours 42.00