According to c. k. prahalad, the first stage of globalization is when global firms set up operations in other countries when companies produce goods in one country and export them to other countries when global businesses establish foreign subsidiaries to handle the exports from their home countries when stateless corporations locate their core corporate functions and top executives in different countries when multinational companies headquarter in their home country previous next

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.