Two alternatives, identified X and Y, are under consideration at Hayden Corporation. Costs associated with the alternatives are listed below. Alternative X Alternative YMaterial costs$44,000 $56,000 Processing costs 37,000 59,000 Building costs 14,000 14,000 Equipment rental 11,000 11,000 Are the materials costs and processing costs differential in the choice between alternatives X and Y? (Ignore the building costs and equipment rental in this question.)
A. Both materials costs and processing costs are differential.
B. Neither materials costs nor processing costs are differential.
C. Only processing costs are differential.
D. Only materials costs are differential.
Answer: A
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