Process costing: airport check-insFriendly Skies Ltd operates the check-in facilities at domestic and international terminals throughout AustraDuring May the following costs were incurred as passengers were processed by the check-in departmenBrisbane Airport:International terminalDomestic terminaCosts:Managers' and supervisors' salaries$18 000$27 000Check-in staff salaries13 50045 000Depreciation on baggage handling equipment29 34057 600Boarding passes, baggage tags and other consumables3 7002 520Depreciation on computer hardware and software9 00030 600Equipment insurance9002340Rent (allocated per square metre)1 8007 200Electricity2 1605 940Number of passengers processed6 30019 800al. Management Accounting : Information for Creating and Managing Value, McGraw-Hill Australia, 2017. ProQuest Ebook Central,proquest.com/lib/kingsowninst-ebooks/detail.action?docID=5471211.st-ebooks on 2021-10-19 13:42:28.RT TWO COSTS AND COSTING SYSTEMSRequired: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 terminale3. Do these costs provide a reliable estimate of the costs ininternational and domestic terminals? Explain your answer.ach passenger at theСоpy4. How might the management of Friendly Skies Ltd use this info

Process costing: airport check-ins Friendly Skies Ltd operates the check-in facilities at domestic and international terminals t During May the following costs were incurred as passengers were processed by the che Brisbane Airport: International terminal Costs: Managers' and supervisors' salaries $18 000 Check-in staff salaries 13 500 Depreciation on baggage handling equipment 29 340 Boarding passes, baggage tags and other consumables 3 700 Depreciation on computer hardware and software 9 000 Equipment insurance 900

Process costing: airport check-ins Friendly Skies Ltd operates the check-in facilities at domestic and international terminals t During May the following costs were incurred as passengers were processed by the che Brisbane Airport: International terminal Costs: Managers' and supervisors' salaries $18 000 Check-in staff salaries 13 500 Depreciation on baggage handling equipment 29 340 Boarding passes, baggage tags and other consumables 3 700 Depreciation on computer hardware and software 9 000 Equipment insurance 900

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

100%

Process costing: airport check-ins
Friendly Skies Ltd operates the check-in facilities at domestic and international terminals throughout Austra
During May the following costs were incurred as passengers were processed by the check-in departmen
Brisbane Airport:
International terminal
Domestic termina
Costs:
Managers' and supervisors' salaries
$18 000
$27 000
Check-in staff salaries
13 500
45 000
Depreciation on baggage handling equipment
29 340
57 600
Boarding passes, baggage tags and other consumables
3 700
2 520
Depreciation on computer hardware and software
9 000
30 600
Equipment insurance
900
2340
Rent (allocated per square metre)
1 800
7 200
Electricity
2 160
5 940
Number of passengers processed
6 300
19 800
al. Management Accounting : Information for Creating and Managing Value, McGraw-Hill Australia, 2017. ProQuest Ebook Central,
proquest.com/lib/kingsowninst-ebooks/detail.action?docID=5471211.
st-ebooks on 2021-10-19 13:42:28.
RT TWO COSTS AND COSTING SYSTEMS
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 terminale
3. Do these costs provide a reliable estimate of the costs in
international and domestic terminals? Explain your answer.
ach passenger at the
Соpy
4. How might the management of Friendly Skies Ltd use this info

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