Orange uses activity-based costing. Two of Orange's production activities are kitting (assembling the raw materials needed for each computer in one kit) and boxing the completed products for shipment to customers. Assume that Orange spends $7,500,000 per month on kitting and $20,000,000 per month on boxing. (Click the icon to view allocation information.) (Click the icon for additional information.) If a desktop now uses 100 parts, what is the new kitting cost assigned to one desktop? (Round all calculations to the nearest cent.) O A. $7.50 B. $2.00 OC. $2.50 OD. $6.00 More Info -X More Info Orange allocates the following: Kitting costs based on the number of parts used in the computer Boxing costs based on the cubic feet of space the computer requires Print Done Suppose Orange estimates it will use 375,000,000 parts per month and ship products with a total volume of 25,000,000 cubic feet per month. Assume that each desktop computer requires 125 parts and has a volume of 7 cubic feet. The predetermined overhead allocation rate for kitting is $0.02 per part and the predetermined overhead allocation rate for boxing is $0.80 per cubic foot. The kitting and boxing costs assigned to one computer are $2.50 and $5.60, respectively. Orange contracts with its suppliers to pre-kit certain component parts before delivering them to Orange. Assume this saves $1,500,000 of the kitting cost and reduces the total number of parts by 275,000,000 (because Orange considers each pre-kit as one part). Print Done