A. Compute the Cost Effect- Price Recovery Component indicate if favorable/(unfavorable).

B. Compute the Productivity Component indicate if favorable/(unfavorable).

PROBLEM: Financial Perspective Gloria Corporation presents the following information for year 2020 & 2021 Sales Production Expenses Direct materials Direct labor Gross Profit Factory overhead Operating Expenses 2020 P 45,000 2021 P 38,000 12,000 9,504 10,000 5,000 8,976 5,000 P 18,000 P 14, 520 13,000 Operating income 13,000 P 5,000 P 1, 520 During the year 2020, the corporation was able to sell 10, 000 units which is 25% above the sales in 2021. The same capacity was used for factory overhead and operating expenses for years 2020 and 2021. Other data are as follows: Raw materials used (kg) Direct labor hours 2020 2021 1,200 720 1,000 816