Compute the Revenue Effect- Growth Component, indicate if favorable/(unfavorable). *The activity driver for conversion cost is the direct labor hours.Compute the Cost Effect- Price Recovery Component indicate if favorable/(unfavorable). *The activity driver for conversion cost is the direct labor hours. PROBLEM: Financial PerspectiveGloria Corporation presents the following information for year 2020 & 202120202021SalesP 45, 000P 38, 000Production ExpensesDirect materials12, 0009, 5048, 9765, 000P 14, 520Direct labor10, 000Factory overhead5, 000Gross ProfitP 18, 000Operating Expenses13,00013, 000Operating incomeP5, 000P1, 520During the year 2020, the corporation was able to sell 10, 000 units which is 25% above the sales in2021. The same capacity was used for factory overhead and operating expenses for years 2020 and2021. Other data are as follows:20202021Raw materials used ( kg)1, 200720Direct labor hours1, 000816

Revenue is the amount generated by the company in the course of normal operation within the…

PROBLEM: Financial Perspective Gloria Corporation presents the following information for year 2020 & 2021 2021 P 38, 000 2020 P 45, 000 Sales Production Expenses Direct materials 12,000 9, 504 Direct labor 10,000 8, 976 Factory overhead 5, 000 5, 000 Gross Profit P 18, 000 P 14, 520 Operating Expenses 13,000 13, 000 Operating income P5, 000 P1, 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: 2020 2021 720 Raw materials used ( kg ) 1, 200 Direct labor hours 1, 000 816

PROBLEM: Financial Perspective Gloria Corporation presents the following information for year 2020 & 2021 2021 P 38, 000 2020 P 45, 000 Sales Production Expenses Direct materials 12,000 9, 504 Direct labor 10,000 8, 976 Factory overhead 5, 000 5, 000 Gross Profit P 18, 000 P 14, 520 Operating Expenses 13,000 13, 000 Operating income P5, 000 P1, 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: 2020 2021 720 Raw materials used ( kg ) 1, 200 Direct labor hours 1, 000 816

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter16: Financial Planning And Forecasting

Section: Chapter Questions

Problem 2P: AFN EQUATION Refer to Problem 16-1. What additional funds would be needed if the companys year-end...

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