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Zurasky Corporation is considering two alternatives: A and B. Costs associated with the alternatives are...

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Accounting

Zurasky Corporation is considering two alternatives: A and B. Costs associated with the alternatives are listed below:

Alternative A Alternative B
Materials costs $47,000 $65,000
Processing costs $53,000 $53,000
Equipment rental $12,400 $29,200
Occupancy costs $20,200 $31,400

What is the differential cost of Alternative B over Alternative A, including all of the relevant costs?

Multiple Choice

  • $156,200

  • $132,600

  • $178,600

  • $46,000

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