Process costing: airport check-ins Friendly Skies Ltd o perates the check-in facilities at domest ic and international terminals throughout Australia. During May the following costs were incurred as passengers were processed by the check-in department at Brisbane airport:

Internatlonal termlnal Domestlc termlnal

Costs:

Manages' and supervisors' salaries $18000 $27000

Check-in staff salaries 13500 45000

Depreciation on baggage handling equipment 29340 57600

Boarding passes' baggage tags and other consumables 3700 2520

Depreciation on computer hardware and software 9000 30600

Equipment insurance 900 2340

Rent (allocated per square metre) 1800 7200

Electricity 2160 5940

Number of passengers processed 6300 19800

Q:

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. low might the mangement of Friendly Skies Ltd use this information?