Alternative Q Alternative R

Supplies costs$90,000 $90,000

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

Power costs$48,000 $46,900

Inspection costs$45,000 $46,900

Assembly costs$54,000 $54,000

Required:

a. Which costs are relevant and which are not relevant in the choice between these two alternatives? 1. Supplies costs 2.Power costs 3.Inspection costs 4. Assembly costs

b. What is the differential cost between the two alternatives? 1. Differential cost