In the context of a company entering a foreign market, identify a difference between licensing and wholly owned subsidiaries. Question 5 options:Licensing creates distance from customers, whereas wholly owned subsidiaries provide direct exposure to local customers. Licensing protects intellectual property, whereas wholly owned subsidiaries are prone to losing their intellectual property. Licensing possesses high risk, whereas wholly owned subsidiaries are subjected to low risk. Licensing is an equity mode of entering a foreign market, whereas wholly owned subsidiaries refer to a nonequity mode of entering a foreign market.

Oerstman, inc. uses a standard costing system and develops its overhead rates from the current annual budget.the budget is based on an expected annual output of 120,000 units requiring 480,000 direct labor hours.(practical capacity is 500,000 hours)annual budgeted overhead costs total $772,800, of which $556,800 is fixed overhead.a total of 119,300 units, using 478,000 direct labor hours, were produced during the year.actual variable overhead costs for the year were $260,400 and actual fixed overhead costs were $555,450.required: 1. compute the fixed overhead spending variance and indicate if favorable or unfavorable.2. compute the fixed overhead volume variance and indicate if favorable or unfavorable.