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Costs associated with two alternatives, code-named Q and R, being considered by Albiston Corporation are...

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Accounting

Costs associated with two alternatives, code-named Q and R, being considered by Albiston Corporation are listed below:

Alternative Q Alternative R
Supplies costs $ 68,000 $ 68,000
Power costs $ 31,500 $ 30,300
Inspection costs $ 22,000 $ 30,300
Assembly costs $ 36,000 $ 36,000

Required:

a. Which costs are relevant and which are not relevant in the choice between these two alternatives?

b. What is the differential cost between the two alternatives?

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