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?

Multiple Choice

Neither materials costs nor processing costs are relevant

Only processing costs are relevant

Only materials costs are relevant

Both materials costs and processing costs are relevant