CA Corp issued a 5-year loan of 100,000 to Barry. Barry will repay the loan in five years with annual interest payments based on a variable interest rate equal to the one-year LIBOR rate plus a spread of 120 basis points. Barry is concerned that there will be large fluctuations in interest rate, which will negatively affect his ability to repay the loan. You are given the following information on interest rate swaps: Counterparty Swap Rate Variable Rate Allen 2.5%2.5% LIBOR 1.2%1.2% Clark 2.5%2.5% LIBOR 1.2%1.2% Bruce 2.5%2.5% LIBOR 1.2%1.2% The swap term for each of the interest rate swap is 5 years. Required:
Which situation is the most accurate representation of the best strategy chosen by Barry to reduce the impact of the large interest rate fluctuations?

Laval produces lamps and home lighting fixtures. its most popular product is a brushed aluminum desk lamp. this lamp is made from components shaped in the fabricating department and assembled in the assembly department. information related to the 22,000 desk lamps produced annually follows.direct materials $280,000direct labor fabricating department (8,000 dlh × $24 per dlh) $192,000assembly department (16,600 dlh × $26 per dlh) $431,600machine hours fabricating department $15,200mhassembly department $20,850mhexpected overhead cost and related data for the two production departments follow.fabricating assemblydirect labor hours 150,000dlh 295,000dlhmachine hours 161,000mh 128,000mhoverhead cost $400,000 430,000required1. determine the plantwide overhead rate for laval using direct labor hours as a base.2. determine the total manufacturing cost per unit for the aluminum desk lamp using the plantwide overhead rate.3. compute departmental overhead rates based on machine hours in the fabricating department and direct labor hours in the assembly department.4. use departmental overhead rates from requirement 3 to determine the total manufacturing cost per unit for the aluminum desk lamps.