W5 3 14

14.

Two alternatives, code-named X and Y, are under consideration at Guyer Corporation. Costs associated with the alternatives are listed below.

	Alternative X	Alternative Y
Materials costs	$41,000	$59,000
Processing costs	$45,000	$45,000
Equipment rental	$17,000	$17,000
Occupancy costs	$16,000	$24,000

Are the materials costs and processing costs relevant in the choice between alternatives X and Y? (Ignore the equipment rental and occupancy costs in this question.) A neither materials costs nor processing costs are relevant B only processing costs are relevant C only material costs are relevant D both material costs and processing costs are relevant