Answer: $57,600
Explanation:
The differential Cost of Alternative B over Alternative A can be calculated by subtracting the various costs of Alternative B from A and then summing them up.
Materials
= Alternative B costs - Alternative A Costs
= 56,000 - 24,000
= $32,000
Processing Costs
Alternative B costs - Alternative A Costs
= 30,000 - 30,000
= $0
Equipment Rental
= Alternative B costs - Alternative A Costs
= 28,100 - 10,200
= $17,900
Occupancy Costs
= Alternative B costs - Alternative A Costs
= 26,800 - 19,100
= $7,700
Adding them all up we get,
= 7,700 + 17,900 + 32,000
= $57,600
$57,600 is the differential cost of Alternative B over A.
