E6.29 LO 6.9 Process costing: airport check-ins Friendly Skies Ltd operates the check-in facilities at domestic and international terminals throughout Australia. During May the following costs were incurred as passengers were processed by the check- in department at Perth Airport: Costs: International terminal Domestic terminal Managers' and supervisors' salaries $36000 $ 54000 Check-in staff salaries 27000 Depreciation on baggage handling equipment 58 680 90000 115200 Boarding passes, baggage tags and other consumables 7400 5040 Depreciation on computer hardware and software 18000 61 200 Equipment Insurance 1800 4680 Rent (allocated per square metre) 3600 14400 Electricity 4320 11880 Number of passengers processed 12600 39600 Required 1. Calculate the cost per check-in at the international and domestic terminals. 2. Why does the cost per check-in differ between the two terminals? 3. Do these costs provide a reliable estimate of the costs incurred to check in each passenger at the international and domestic terminals? Explain your answer. 4. How might the management of Friendly Skies Ltd use this information?