P6.40 LO 6.9 Process costing: university enrolments Flagstaff University is exploring the possibility of outsourcing part or all of its enrolment function. This function involves three separate processes:

(a) validation, where the new student's secondary school results are sighted and the university's offer of enrolment is validated

(b) student records, where the student's study program details for the current year are entered into the student record system

(c) fees collection, where students pay their union fees and upfront course fees, if they choose to do so. The annual costs of these three processes are: Cost Validation Student records Fees collection Staff salaries $180000 $120000 $105000 IT and other equipment depreciation 30000 75000 60000 Equipment insurance 3000 6300 6000 Telephone 3300 9900 6000 Data processing 18900 60000 15600 Postage Consumables 3000 19500 9000 105000 27000 Electricity 3600 7200 6.600 The university processes 14 000 student enrolments per year. Required 1. Calculate the cost per student enrolment for each process. 2. Calculate the total cost per student enrolment. 3. Does the total cost per student enrolment provide a reliable estimate of the costs incurred to process each enrolment? Explain your answer. 4. Apart from informing its outsourcing decision, how might the university's management use this information? 5. Would you recommend estimating service costs for all major student services in the university? Explain your answer.