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

	Alternative Q				Alternative R
Supplies costs	$	86,000			$	86,000
Power costs	$	42,000			$	41,000
Inspection costs	$	37,000			$	41,000
Assembly costs	$	45,000			$	45,000

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