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

	Alternative X	Alternative Y
Materials costs	$39,000	$39,000
Processing costs	$44,000	$58,000
Equipment rental	$10,000	$10,000
Occupancy costs	$15,000	$29,000

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.)

Only processing costs are relevant

Both materials costs and processing costs are relevant

Only materials costs are relevant

Neither materials costs nor processing costs are relevant