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

	Alternative Q				Alternative R
Supplies costs	$	70,000			$	70,000
Power costs	$	32,400			$	31,200
Inspection costs	$	24,000			$	31,200
Assembly costs	$	37,000			$	37,000

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?

a.	Supplies costs
	Power costs
	Inspection costs
	Assembly costs
b.	Differential cost