I disagree with the statement that Fy = 28.5g. If this was the case, either there would be no friction (as the wagon isn't exerting any force on the ground) or there is a moment acting on the wagon, in which case it will have a rotational acceleration - and that seems much more complicated than this problem is supposed to be. I would say that there should be a net force between the wagon and the ground, meaning you will need one more force in your diagram.
The problem, as originally stated, is not determinate. If the wagon is not moving at a constant velocity, then it is being accelerated (or decelerated). To find the net force, you will need to be given either the acceleration or information on how the frictional force is calculated (are the wheels dragging? or is the friction in the hub of the wheels? In either case, you would need a coefficient for friction). Again, I think this is more complicated than the problem is supposed to be.
So after all that, I believe it is safe to assume the wagon is supposed to be moving at a constant velocity. If this is indeed the case, the problem has just become amazingly easy (check Newton's First Law of Motion). However, I also think the question is actually asking for the force applied on the handle, F. To find this, consider what the sum of the forces in the horizontal direction will be. Once that is determined, you will be able to find Fx, which will then be a simple calculation to find F.