Wallis Company manufactures only one product and uses a stan

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 $2,887,000 of fixed manufacturing overhead for an estimated allocation base of 288,700 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 Liabilities and Equity Retained earnings Total liabilities and equity $ 770 220 340 9,200 $10,530 $10,530 $10,530 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 overheacd Total standard cost per unit 2 pounds $ 31.40 per pound62.80 42.00 30.00 $134.80 3.00 hours 3.00 hours $ 10.00 per hour 14.00 per hou During the year Wallis completed the following transactions

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Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. Standard Cost SQ SR Standard Unit Cost Total Standard Quantity 95700*SQ Direct Material 2 31.4 62.8 191400 Direct Labor 3 14 42 287100 Fixed Ovh 3 10 30 287100 Total Standard Cost 134.8 Actual: Unit produced and sold 4000 Direct Material Purchased 233500 30.2 7051700 Direct Material Used 216750 30.2 6545850 Direct Labor 246400 16 3942400 Fixed Ovh 246400                                      11.13 2743500 Direct Material Variance: Material Efficiency Variance (AQ-SQ)*SR (216750-191400)*31.4 795990 U Material Price Variance (AP-SP)*AQ (30.2-31.4)*216750 260100 F Direct Labor Variance: Labor Efficiency Variance (AQ-SQ)*SR (246400-287100)*14 569800 F Labor Price Variance (AR-SR)*AQ (16-14)*246400 492800 U Fixed Overhad Variance: Fixed Overhead Volume Variance Absorbed Ovh-Budgeted Ovh (246400*10)-2887000 423000 U Fixed Overhead Budget Variance Actual Ovh-Budgeted Ovh 2743500-2887000 143500 F Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. Cash Raw Material WIP FG PPE = Mat Price Var Material Q Var Labor Rate Var Labor Eff Var FOVolume FOBUdget RE 1/1 770 220 340 9200 10530 a -7051.7 7051.7 b -6545.85 6545.85 c -3942.4 3942.4 d 2464 d -1347 -1347 d -1396.5 -1396.5 e -12952.3 12952.25 f 15759 15759 g -12495.96 -795.99 260.1 569.8 -492.8 -423 143.5 -13234.4 (92700*134.8) h -2123.5 -2123.5 i 795.99 -260.1 -569.8 492.8 423 -143.5 -738.39 12/31 2064.4 725.85 0 796.29 7803.5 0 0 0 0 0 0 7449.26