The Sit-N-Spin Corporation manufactures and assembles office chairs. Sit- N - Spin uses an activity-based costing system to allocate all manufacturing conversion costs. Each chair consists of 30 separate parts totaling $125 in direct materials, and requires 6.0 hours of machine time to produce. Additional information follows: Activity Materials handling Machining Assembling Packaging Allocation Base Number of parts Machine hours Number of parts Number of finished units Cost Allocation Rate $3.75 per part $6.00 per machine hour $4.50 per part $7.75 per finished unit What is the cost of materials handling per chair? O A. $112.50 O B. $36.00 OC. $135.00 O D. $46.50