Question 2 &3 uses this table below to answer.

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 $2,882,000 of fixed manufacturing overhead for an estimated allocation base of 288,200 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 $720 170 290 B,700 $9,880 Liabilities and Equity Retained earnings Total 1iabilities and equity 9,880 $9,880 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 30.40 per pound 60.80 39.00 30.00 $129.BO 3.00 hours 13.00 per hour 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 $2,882,000 of fixed manufacturing overhead for an estimated allocation base of 288,200 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 $720 170 290 B,700 $9,880 Liabilities and Equity Retained earnings Total 1iabilities and equity 9,880 $9,880 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 30.40 per pound 60.80 39.00 30.00 $129.BO 3.00 hours 13.00 per hour